Oil Bubble Bursting? - NearlyNineThirty.com Stock Market and Financial Forums

erick99 · 06-25-2008, 12:30 PM

I have waiting for the oil bubble to burst and I don't know if we are here yet or not. Keep in mind that due to declining open interest that has been less volatility in the market. But, today, as of 12:30pm EDT, Nymex crude is down over $4 and gasoline futures are down nearly .11 per gallon. This is attributed to an unexpected jump in US inventories. How could that be unexpected? People are cutting back a lot. The six and seven figure investors are more than a little divorced from this part of life that the other 300M folks are experiencing

erick99 · 06-26-2008, 03:49 AM

Oil is down almost a buck in overnight trading. it's not a big change but the overnight volume is generally pretty low. Tomorrow could bring a big drop.

erick99 · 06-26-2008, 09:49 PM

Well, my bubble grew to $140 today for the first time ever. This is not looking good but I will hang on to my theory for a bit longer (out of stubbornness if nothing else).

Ray The Money Man · 08-12-2008, 07:27 PM

What a difference 7 weeks makes. If anything we learned about this summer is that we should take any profits we have. You just have to in a "sideways trading" market. I must admit I got stuck holding the bag on a couple of Energy/Oil stocks that I was up on.

....Take the profits!

http://oilenergystockvideos.blogspot.com

Ray The Money Man · 11-07-2008, 12:20 PM

I do love to revisit these threads, what a difference a couple of weeks makes. Stick with the trends that we have, not what you wish it was.

As the dollar strengthens, with any interest rate drop out of China and Europe, etc, Crude will drop. Let go of any dollar figure in your head. Here is the trend rating from my favorite service, The Market Club.

Ticker DXO - Double Long Crude Strong Downtrend Up Arrow

Smart Scan Chart Analysis confirms that a strong downtrend is in place and that the market remains negative longer term. Strong Downtrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.

Based on a pre-defined weighted trend formula for chart analysis, DXO scored -100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

-10 Last Hour Close Below 5 hour Moving Average
-15 New 3 Day Low on Thursday
-20 Last Price Below 20 Day Moving Average
-25 New 3 Week Low, Week Ending November 1st
-30 New 3 Month Low in October
-100 Total Score

I have made a fortune relying on these trends. Forget everything else you hear. Trade the trends and this one isn't even questionable!

Crude Oil Trader