WTF-Crude Fell from 62.20 to 57.38 in one hour

Quote from mokwit:

Isn't that where the hedgies locked in their profits with puts while they worked who was the greater fool who would take them out of their positions.
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Would you mind explaining?
Thanks.

I like this explanation from Bloomberg:

" Oil jumped more than $1 in the days after the Sept. 11, 2001, terrorist attacks on New York and Washington before falling for the rest of the year as travel and the economy slowed. Prices have more than tripled since late 2001. Crude oil rose on the day of the Madrid attacks on March 11, 2004."

http://www.bloomberg.com/apps/news?pid=10000087&sid=adDnHuHKRhAw&refer=top_world_news

Maybe, the harm to the economy has been anticipated this time around...
 
Short Oil...


61.15 bid, 61.225.

I am already short QM from last night at 61.50; or I would use this mark-up as a entry point short.

The energy complex is being manipulated for the purposes of marginally increasing the amount of money that flows into the Middle East-- as a means to off-set, or reduce, some of America's expenses related to our Adventures In Imperialism in that region of the world.

Bush was given two choices-- rollback his tax cuts to finance the McDonaldization of the people's of the Middle East (political suicide during a period where Republicans are trying to build a dynasty) or jam energy prices higher, as a "back door" tax , to finance our little excursion (politically benefical as the Proles will never connect the dots and the elite, Bush's constituency-- particularly the oil boyz, continue to get fat).

Put a stop in at 63 and take your profits in the low 50's.
 
Quote from mokwit:

Alternatively, now we can see how much of the buying in oil was purely speculative. If it was really demand related it would have gone up on fears of other actions in e.g Saudi, but it went down most likely because the hedgefunds shifted all their capital into safe haven bonds which went up.
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I tend to agree. The crude market really showed its weakness in the clutch, imho.

the buying of bonds in a perceived crisis ought to really shut the mouths of the America-is-dead crowd, if they weren't too busy yapping to hear it.
 
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