Tuesday, July 30, 2013

Oil: Where We're At

One of the dumbest things you can do while at the market is have multiple positions across multiple markets that have the same core thesis but opposite positioning. For example we are looking for gold to continue the upmove that started at $1226 (actually $1179.40 but we were 15 hours and $46 bucks early).

Eventually the shiny stuff should get down to the 1980 high, $875 print in Hong Kong, but that's a way's away, sometime in 2014 maybe.

We've also been negative on WTI since July 22's "Oil Looks Extended: "Huge Backwardation In Crude Oil" (and what it means for equities)" at $107.03 and the 24ths "Oil: WTI Falls Most in a Month, Bakken at 7-week Low" at $105.18.

So, for now anyway, today's $103.13 (low $102.67) looks like a gift: