Sean’s Rant

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.

Gold has skyrocketed and oil has dropped like a rock in the last few months, in case you were in a closet.

Here’s why I am long oil (USO) and am getting longer on dips:

Although the below film is outdated and does not reflect the recent swing towards the dollar, it rings true and projects where it will go. I don’t see the other currencies being too successful either though, considering they aren’t gold backed either. That is why I strongly support gold silver and oil (GLD, SLV, USO or BP). I own USO and BP. 

This is a continuation of my last post but I wanted to cover why the “Credit Crisis” has really just been masking the underlying reasons for the decline in the economy. See this site for some insight on the current trade deficit.

I would think this is quite obvious. When all companies of one industry are profiting enormously at around the same rate for a long period of time, capitalism is not working correctly. What this means is that if it were, than there would begin to be a lower cost provider, even if it is a commodity. There can still be cheaper providers of other commodities, with competition the price of gas should be based on more than just the price of the raw product, or even the cost of the refined product.  It should be based on marketing and margins of allowable loss in order to convince the customer to use their product. When the obvious doesn’t happen look to collusion.