Interesting Article on Oil and USO

Sunday, October 11, 2009

This is an interesting part of an article on Oil I have found in Seeking Alpha:

"Be a contrarian: Crude has fallen an unprecedented amount. This has caused USO to implode nearly 80% from last year's highs. It has simply dropped too much in too short of a timeframe. Those who have the risk tolerance to buy now, set themselves up for the biggest reward. To exploit an over-reactive market, prudent buyers hone in on unpopular ideas, and USO 's sentiment is so negative at this juncture, it is clearly near an important turning point. The game is merely about buying low and selling high, and to do so, the investor must buy when an equity is unpopular and conversely sell, when it is popular. How else are you supposed to buy low and sell high? Easy to say, hard to do." Mark Krieger, Trader

Mark Krieger is a Registered Investment Adviser and he has been active the past 20 years as a trader, portfolio manager, and shareholder activist.

Oil Traders 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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