Crude Oil and Housing
I called this bull market in oil. Heres my post when oil was at $35/barrel. I am not as bullish on it now because of the massive run up we have seen. I still see it going up in the long run but there has got to be a correction because the supply funadmentals still don’t support the bullish action. There is still way too much oil sitting around for it to be at these levels. I wouldn’t necessarily short oil but I would wait for a bit to buy more of it and you can do this with USO.
I am short the dow through DXD because like our friend Paul Krugman at the New York Times said the other day about falling wages, I just don’t believe that the fundamental promlem underlying our economy has changed. I noticed the falling wages problem but Paul Krugman summarized it nicely.
I also called the new housing bubble, stating that through low interest rates and the new homebuyer tax credit, there will be a short term bubble in housing. And look at what came out this week: Housing is starting to stabilize. Don’t worry it will pop like the last one did.
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