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IBDvalueinvestin (98.36)

Crude oil at top near-term. Seasonal downtrend will now take it down till late Feb. 2010



October 26, 2009 – Comments (2)

I would be shocked if oil does not head back towards $60's by Feb. 2010.

Related tickers : OIL, DTO

2 Comments – Post Your Own

#1) On October 26, 2009 at 11:51 AM, IBDvalueinvestin (98.36) wrote:

In the good old days stocks would rally when oil went down not the opposite.

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#2) On October 26, 2009 at 12:38 PM, Melaschasm (71.57) wrote:

Crude Oil inventories have been unusually high for months now. 

On the one hand, it would seem that excess supply during the lower demand winter months should push down prices.

On the other hand, crude oil appears to be the new gold (inflation hedge).  As such, prices could continue to increase as long as US dollars continue to be printed at a rapid rate.

I have reduced the number of oil companies in my CAPS account to prepare for a potential collapse in prices.  I have not sold them all, because I think this bubble will grow bigger before it pops. 

While Crude might be to high right now, I suspect that it will be $100+ in five years.  If it takes my oil companies a few years to become winners, I can live with that, since I am a long term investor.

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