The futures are up $1.92 at $83.35 after trading considerably higher.
On October 25 we posted "Time to Try an Oil Short (USO)" with the futures at $82.52.
Stopped out at a 1% move against.
A close below $82.70 would warrant another look at the short side tomorrow, otherwise the downtrend from the Oct. 7 $84.43 is broken.
From that Oct. 25 post:
Kids don't try this without parental supervision. This is a high risk/low reward play.Update:
[I direct your attention to the daring young man on the flying trapeze -ed]
The futures closed at $82.52 up $0.83 per barrel. After hours we have oil backing off to $82.33....
Double crapski, I forgot to link to the headline story, from Bloomberg:
Oil gained in New York as China’s manufacturing expanded at the quickest pace in six months, and hedge funds boosted bets that prices will rise.
Funds and other large speculators increased wagers on rising crude prices by 9.3 percent in the seven days ended Oct. 26, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report. Oil rose amid expectations U.S. policy makers will announce more large-scale asset purchases, or quantitative easing, when they meet tomorrow.
“Commodities are attractive as an asset class as demand burgeons from developing nations,” Christopher Bellew, senior broker with Bache Commodities Ltd. in London. “Generally the market is in a remarkably stable range, a ‘Goldilocks’ mode that is neither too high nor too low, as Saudi’s ability to tweak supplies caps prices.”...MORE