Two Ways To Play: Thirty-Dollar Barrels?
Strengthen your portfolio in good times and bad.
According to Bloomberg, oil traders are getting increasingly bearish and betting that the Organization of Petroleum Exporting Countries won't be able to prevent crude prices from falling to $30 a barrel.
OPEC is scheduled to meet on November 29th in Cairo to discuss another possible cut in production. Last month, at a meeting in Vienna, the oil cartel slashed its production by 1.5 million barrels a day.
Today, crude oil rose $2.37, or 4.2%, to $58.53 a barrel after hitting a 21-month intraday low. Since reaching a record high of $147.27 a barrel in July, futures have fallen 60%.
From the Bull Pen: In the short term, these beaten down energy stocks may have room to run. But it still pays to be patient in these markets. Schlumberger (SLB) can be an option on a pullback to $50. A tight sell stop can be set below.
From the Bear Cave: Strong moves in the Oil ETF (USO) today. Bears can consider testing the downside at resistance levels $51 and $53.
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