Two Ways: OPEC Stays Put on Production
Strengthen your portfolio in good times and bad.
OPEC Not Budging
OPEC's Secretary General Abdullah al-Badri said yesterday the price of crude oil could spike to $80-90 a barrel by early next year. But even if prices were to reach that level, the cartel won't be expanding production until an over-supply has been absorbed.
In a story by Reuters, al-Badri said last week that he expected to see crude around $70-75 a barrel by the end of 2009, and acknowledged that at current prices there is some speculation but nowhere near the levels when the commodity spiked to a record $147 last July. But continued speculation as well as a falling US dollar could help push prices near triple digits by the beginning of 2010, al-Badri said. He also added that until oil inventories in industrialized countries fall from a current 62 days to 52 days worth of future demand, the cartel won't be making any moves.
From the Bull Pen: For those bullish crude, consider Hess Corp. (HES). The stock was hit yesterday due to concerns related to one of its properties off the coast of South America. But if fears are overdone, it could be rewarding. Watch the behavior near its 50 DMA ($58.70). One can enter an initial position there with a tight sell stop below.
From the Bear Cave: Regarding the dollar, the trend is your friend until it's not. Dollar bears can continue to ride the Euro ETF (FXE). A tight 2 point sell stop could relieve you of any painful correction.
Quick Check Around the World
Asian trading closed with the Hang Seng 1.02%, India -0.03%, Shanghai 1.99%, Nikkei 0.38%, and Taiwan -0.80%.
Glancing towards Europe, we see the CAC -1.13%, DAX -0.54%, FTSE -1.77%
As of 8:00 AM EST, S&P Futures are trading -5 to 937.00, and Nasdaq futures are -7 to 1472.00.
A Look at Commodities
Over in commodities, crude oil is trading -0.76 to 67.79 while gold is -9.20 at 975.20 this morning. Silver is -0.165 to 15.79 and copper -2.75 to 227.00.
The dollar index is +0.5150 to 78.9850.
On the Radar
08:15 ADP Employment Change -543K Cons.
Click here for the full trading radar.
Happy Hump Day! Good luck!
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