Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Buy the Rumor, Sell the Crude


Strengthen your portfolio in good times and bad.


Where's Crude Headed?

Crude has been rising for the past 3 weeks, which is leading many to believe the commodity has finally found a floor. Oil has dropped over $100 from last summer's all-time high of $147. But according to the New York Times, a number of market participants are questioning whether crude oil has really reached a bottom, with some believing it could fall to $20 a barrel - and stay there for years as the global economy worsens.

It should be noted this view isn't widely held, and oil bulls are quick to point out the that Organization of the Petroleum Exporting Countries (OPEC) continues to prop up prices with production cuts. Analysts are expecting more cuts -- from 500,000 to 1,000,000 barrels a day -- when the cartel meets in Vienna on March 15.

From the Bull Pen: If you're bullish oil, the best exposure could likely be Suncor Energy (SU). In the near term, one can set a sell stop below $22.50.

From the Bear Cave
: Oil bears can play the downside in the ETF (USO); a buy stop can be set above $30. More aggressive traders can use the Ultrashort Oil & Gas (DUG). But remember, it's for very short term positions only.

Quick Check Around the World

Asian trading closed with the Hang Seng 3.08%, Nikkei -0.44%, Taiwan 0.92% and Shanghai 1.88%.

Glancing towards Europe, we see the CAC 1.21%, DAX 1.78%, FTSE 1.12%

As of 8:00 AM EST, S&P Futures are trading +13 to 689, and Nasdaq futures are +10 to 1063.

A Look At Commodities

Crude oil is trading +0.29 to 47.36. Gold is -2.70 to 916.30. Silver is -0.11 to 12.830, and copper +2.05 to 166.00.

The dollar index is -0.4750to 88.5250.

On the Radar


10:00 Wholesale Inventories -1.00%
10:00 IBD/TIPP Economic Optimism

Click here for the full trading radar.

Be careful, Minyans. Turnaround Tuesday is no guarantee. Good luck!

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos