Corpania Ideas

CAVEAT! I'm an amateur philosopher and idea-generator. I am NOT an investment professional. Don't take any of my advice before consulting with an attorney and also a duly licensed authority on finance. Seriously, this my personal blog of random ideas only for entertainment purposes. Don't be an idiot.

Monday, September 08, 2008

Take your "short oil" profits now (at $105 from $145)

Take your "short oil" profits now Ok, when oil was $145 (on July 13, 2008) I told you sell oil short. Then it fell to $116 and (on August 10, 2008) I said oil had further to fall. Now it is $105 and I want to lock in my credibility by saying take your profits now (that you made from shorting oil or buying etfs & options/futures/puts). $145 to $105 is a giant drop in two months. While long term I wouldn't buy oil (because I think the "solar ceiling" will continue to depress oil prices), in the short term I don't see how it could drop massively (other than Obama opening up a giant lead in the polls). Since the election appears to be polling close (and GOP convention goers were chanting "drill, drill, drill") and Palin is so pro-drilling, I think American politics will keep oil prices buoyant. Also note that Thomas Friedman was on Meet the Press and had some interesting comments about energy policy (e.g. Saudis & Iranians would be celebrating the "pro drilling" stance of GOP - the implication being that drilling takes years to see an effect and "pro drilling" means not fundamentally shifting away from oil). Finally, T.Boone Pickens' ubiquitous ads are promoting natural gas (not as heavily slamming oil) and he's claimed that OPEC will reduce supply to keep oil above $100 per barrel. But I still think oil "should" be around $70 to $90 per barrel until the next major advancement in solar or other alternative energies. However, McCain/Palin's strength in the polls leads me to believe that shorting oil and especially buying options ( betting oil prices will fall ) may not be the best investment right now - due to the premium on oil's "beta". Just my opinion. I could be wrong (as I was predicting Tim Kaine as Obama's VP). Let's see how long my brilliant prognostication streak lasts. ;-) Be well and good karma to you. Regards, Dan

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