Trade Update: OIL

Yesterday OIL gaped down at the open below our stop point, by holding we have seen it rally back to 84.54 so we are 35 pennies in the green. The stochastic on OIL is at 20 and looks to be turning sharply up. We will stay long OIL with a stop @ 84.01. In the long term OIL will probably fall hard, maybe 50% or more, but for now the usual suspects are keeping it up. But we have seen this movie brfore, when Buffet was buying Country and again when he bought Bear Stearns and we all know how that turned out. Whenever you hear talk of sabre ratteling between the US and Iran you can be sure the price of oil was crashing and that Bush just got off the phone with the holy warriors and this was the best they could come up with.