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Two Ways To Play: A Crude Comeback?

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Strengthen your portfolio in good times and bad.

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Crude Rises On Global Bailout

Oil is rebounding from last week's 17% plunge as governments around the world announced plans to rescue the financial system. Crude rose as much as $4.10 to $81.80 a barrel on the New York Mercantile Exchange.

Compare this to Friday when oil fell to $77.70 a barrel, down 45% from its record high in July to its lowest price since September 10, 2007. But Goldman Sachs this morning lowered its target price for crude for a second time this year. It now sees fourth-quarter prices of $75, down from $110. Its year-end target is now $70 a barrel, down from $115. See Todd's Monday Morning Quarterback, where he mentions his plays in the energy space.

From the Bull Pen: Transocean (RIG) was a play that Todd mentioned. The stock has gapped up to near $73.50 in the premarket. Those bullish can wait until the stock tests the gap toward $69.

From the Bear Cave: Crude is due for a rally. But the oil ETF (USO) failing to cross $80 would mark another major lower low since its July high. Those bearish can enter a downside position if and when that time comes.

For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.


Quick Check Around the World

Asian trading closed with the Hang Seng 10.24%, Nikkei -9.62%, Sensex 7.64%, Taiwan -2.15% and Shanghai 3.65%.

Across the pond, we find the CAC 5.79%, DAX 6.64%, FTSE 4.51%

As of 8:15 a.m. EST, S&P Futures are trading +37 to 928, and Nasdaq futures are +47 to 1329.

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A Look At Commodities

Crude oil is currently at +4.27 to 81.98. Gold is +3.90 to 862.90. Silver is -0.020 to 10.580, and copper is -26.75 to 215.65.

The dollar index is down -1.611 to 81.382.


On the Radar

Economics

02:00 Treasury Budget (Sep)

Click here for the full trading radar.

Happy Monday! Good luck today.

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.

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