Sanford Bernstein calling for sharply lower oil. Link
I tend to agree that there is hoarding and hedge fund activity that could unravel. The sector sentiment is excessively bullish. Technically, today was a bad day for oil, with a failure to regain the 50 dma and trendline lost on Friday. September crude is a sell below 74. Keep in mind of course that any bad news could trigger a resumption of the rally, so shorting such a volatile commodity is very risky. I would prefer to just avoid the sector for now.
I tend to agree that there is hoarding and hedge fund activity that could unravel. The sector sentiment is excessively bullish. Technically, today was a bad day for oil, with a failure to regain the 50 dma and trendline lost on Friday. September crude is a sell below 74. Keep in mind of course that any bad news could trigger a resumption of the rally, so shorting such a volatile commodity is very risky. I would prefer to just avoid the sector for now.
This entry was posted
on Monday, August 14, 2006 at 2:58 PM.
