CFTC prepares crackdown on speculators

Quote from Pa(b)st Prime:

Ask Amaranth what happens when you risk going 1 on 1 in the open interest with an equally financed yet better skilled trader. Most squeezers ultimately get squeezed.
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:D
 
Please point out where I posted the gubment should actively control prices?

Your inability to comprehend basic logic is par for the course for someone who is an active enabler for dubyas culture of malfeasance.

are you suggesting that the gubment has no say on how the markets should operate?

If that's the case I should open a broker dealer and front run my clients order flow.

On another note. Are you demented, or do you just suffer from dementia?




Quote from AAAintheBeltway:

You are the kind of clueless idiot who probably thinks rent control is a valid way to deal with housing shortages. Ever notice which countries tend to have the death penalty for hoarding? Basket cases run by the sort of socialist fools we now have in charge. No doubt obama and his buddies will mount some sort of demagogic war on evil speculators here to distract voters from their miserable failures.

The logic of your position is that the govenrment shosuld impose price controls on the necessities of life. Otherwise, evil speculators and hoarders might drive the price to an "unfair" level. We tried that in the '70s and we got gasoline rationing, lines around the blcok and a moronic national 55MPH speed limit. This time I'm sure it will be even worse, as obama controls the national media and is supported by an army of ignoramuses like you.
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Gee, as soon as they heard they could not CORNER the market, the oil price fell like a fat lady on an icy street.


No, there's no manipulation......
 
Quote from rubibond007:

Hi, I think that you have no idea how the oil industry works, But let me tell you something, the biggest especulator in today's commodities market is your Government. They are the One who pushed the Oil and metals prices up destroying the value of the USDollar.

On the other Hand, Today's Oil World doesn't need the US exchange to trade, Singapur, London and China can replace the NYmex with no problem. The Fact is that 70% of the Physical Oil Trading is a Brent Type Oil, not the US Light Sweet Crude.

less player in the financial oil markets will bring more and more volatiliy.

Commodities exchange are here no to create cheap prices, but to discover the right price.

Those old enough to remember the gasoline crisis of 1979 may recall sitting in long lines of cars at filling stations, waiting -- sometimes for hours -- to reach the pump. Yet how many Americans ever made the connection between the price controls of the 1970s and the gasoline shortages of the 1970s? How many have noticed that they haven't been waiting in gasoline lines since Ronald Reagan got rid of the price controls and let the creation of the energy futures market ?

Is interesting that the most over regulated industries in this country are the one in deep troubles.
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I remember well the 1970s, the petroleum distributor
I worked for had to go to the state set-aside program for more
product. You had to "upward certify " to the EPA also.

I do not think we want to return to those days.

Price will regulate demand.
 
Quote from stock777:

Gee, as soon as they heard they could not CORNER the market, the oil price fell like a fat lady on an icy street.


No, there's no manipulation......
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-- Market was already falling before any CFTC talk.

-- Baltic Dry Index (shipping rates) is down hard too after rallying in sync with oil. Can't blame it on speculators b/c none are allowed there! Indeed it is far more volatile than oil, probably because immediate supply and demand push it around wildly without specs to cushion things.
http://www.wikinvest.com/index/Baltic_Dry_Index_-_BDI_(BALDRY)/WikiChart

-- Overblown inflation fears have subsided for now -- gold, interest rates, stocks all showing the same thing. Reflation trade over. Deflation fears may have resumed. Employment report was the first catalyst and synched with seasonality of oil/end of the driving season.

-- We're in a phase where commodities and stocks tend to move together.

I'm not saying "speculators" can't move prices, esp larger investment flows, just that this correction is normal. Remember that speculators are shorting this market too. Over time speculators reduce volatility, unless perhaps a boom/bust cycle comes into effect.

Nice if they got rid of commodity ETF's though. A question: is there an uptick rule on USO? That would be ridiculous. Oil shouldn't be traded like it's a stock.

Shipping rates are devoid of speculators. So why were they up into 2008 even more than oil or other physical commodities?

I think you need to take a trip to China and see all those brand new bustling cities that make US metro areas look like quaint villages. Then maybe you'll have some clue as to why there's been volatility in resource prices.
 
look ... here is my opinion on this

somehow whether though OPEC or "big money" wishful thinking

we got ourselves up to the low $70's a short time ago

but this selling has been overdone

sure we might be headed to $50 - $55

but I tell you folks ... be careful what you wish for

those who blame spec's for the volatility in oil

had better start investigating the movements in everthing
else when and if the happen

and furthermore ... I hope you shorts ( and stupid quant based

BOTS running OPM using leverage to kill others ... )

don't you realize that if everthing goes to ZERO

you will have made alot of money but we will be in such

a deep pile of doo doo your other assets will go to ZERO

and you will find yourself looking for "butts" in the garbage can
like everyone else

:eek:
 
Just a couple of notes:

The USO ETF changed their prospectus to include OTC products into their inventory management policy. Smart on their part - size is done OTC with blocks (Just look at the ICE and ClearPort block trade volumes).

Somehow I am apathetic to all of this political hot air and posturing. Do any of you believe this will affect size intraday speculators? I'm curious. For example, on Friday I had 2000 buys and 2000 sells on Nymex but carried a smallish butterfly over the weekend (50x100x50). Let me know what you think.
 
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