I am Short Oil and S&P Futures: Rally in Risk Is Coming To an End

Tuesday, October 13, 2009

Benchmark U.S. crude oil futures held steady near 57 dollars a barrel Thursday in Asia after a round of short covering from traders in Japan, who returned from the Golden Week break.

Sentiment continued to find support from surging regional equity markets, amid renewed confidence in the outlook for the global economy, or so says the Press.

I think its time to sell Oil short and to sell short all risky assets. The rally in risk we have seen in the last few weeks is coming to an end.

I am short oil at 57.89 and am I short S&P futures at 894.

Interesting comments from Christopher Zook, CIO of Caz Investments that is think best describe what is going on the stock market:

“There’s a whole lot of money on the sidelines that is worried the train has left the station without them, in other words they're fearful they’re missing this move."

“After being down last year there’s no way money managers can excuse being down this year and not participating in the rally. So we’re seeing panic buying which leads me to believe the rally is almost finished.”

Petroleum Oil Gas info Blog is a website for active online oil futures traders. We provide research and relevant oil and energy related news for the oil trader or daytrader.

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