Wednesday, July 23, 2008
I have been as bearish oil as anyone could be given recent circumstances. But I tell you I would not be short here. Gap filled (by USO chart) on declining volume down to severely over sold indicators. I am still bearish oil medium term but a bounce may happen soon. I have included a look at the VIX in the bottom panel. Why? Because it looks to be at support and it looks like a short term spike in the oil price could coincide with catching the hopefuls off guard and help send them back to Palookaville, a place already inhabited by slap happy gold bulls like me. Cash and highest quality equiv's are a nice thing to have in abundance right now.