Right now oil seems like it will go up forever. The market has gaped up the last two mornings but there has not been a sustained follow through. Some of this volatility is due to money and shares changing from professionals taking profits by selling to retail and novice investors who will get their heads hand back to them. This is par for the course at the end of any run, it's how they set you up. The professionals at Goldman Sachs, JP Morgan and others push the price up --every morning for now it seems-- to panic you into buying by making you think they never come back down, THEY COME BACK DOWN!
The way traders push up prices is surprisingly simple. They buy in European futures markets, which don't have the limits that U.S. markets do. That drives up U.S. prices where they may already have positions. It's a move to think about next time one of these exchange chiefs talks about all of the benefits of "market globalization."Most of this run up like everything in our Ponzi stock market is purely speculative at best manipulative or worse otherwise. Keep this in mind as you trade oil in here.
There is a battle here betweens the bulls and bears. If you think the bulls will win, but can't wait to see go long oil useing USO or OIL with a small position and tight stops. Or you can do what i am doing by going long the above and also long DUG as a hedge.
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