| Inspector62 |
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Gold User, Member, TeleChart
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| Registered User |
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| Unsure |
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| Tuesday, March 7, 2006 |
| Wednesday, January 9, 2008 9:45:19 PM |
244
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Also, I understand your argument that investors add liquidity, you hear the same argument every day. I have heard it many, many times, I'm just not sure it's not a big lie.
Exactly how does some hedge fund hoarding millions of barrells of oil add liquidity? Convince me.
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As ... for every dollar made ... a dollar must be lost ...
That is not true at all. If I buy a stock for a dollar and sell it to you for 2 dollars, then you sell if for 3, who lost a dollar?
SOMETIMES it's true, but in a continuing trend it certainly is not.
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There are much better trades out there. This one is just not clear enough IMHO. It will make a move pretty soon, it's just not all that clear which way. Probably up like you said, but why when there are much clearer trades.
Good luck.
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I'm not talking about companies hedging. I totally agree there.
What I am questioning is hedge funds hoarding millions of barrels of oil along with gold and other commodities.
If it were so necessary, how did we get along before it was so easy? This easy access to hoarding of commodities is a pretty recent thing.
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I definately agree. Will probably make a big move soon. Only problem is it looks like a somewhat thinly traded stock. Volume is improving nicely. It is optionable.
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Well which ever way it moves, looks like it will be soon according to the uptick in volume. It's not clear enough at this point for me to commit any money.
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For intelligent discussion only..........
I can't help but wonder if all of these funds and easy ways to invest in commodities is a good idea. Sure it gives us all an opportunity to make a buck in them, but at what cost?
I believe the current estimate is that there is between a $20 and $30 a barrel investor premium in oil. It other words, if all investors sold their oil positions, oil would drop about that amount.
Gold is the same thing. Now people can buy corn, sugar, steel, nickel, you name it, it can be bought. All of this investor buying and sometimes hoarding definately drives up the cost of all of these necessary commodities.
Rising prices = inflation = higher interest rates = faltering economy.
I am NOT saying we should go back to the days when we could not own gold, but maybe it shouldn't be so easy for investors to drive up the cost of these necessities.
Thoughtful opinions are welcome...
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Of course, that could also be a continuation pennant as I look at it again.
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On a daily, does anyone else see a triple top? I know it's not textbook perfect, that's why I ask for other opinions.
On a weekly it looks possibly bullish.
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Looks FAR less bullish on a daily chart. Even bearish.
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