Thursday, September 28, 2006
Last Monday, I turned bullish on oil.
I know that must seem strange since it was just a few weeks ago that I wrote about how bearish I was on the slippery black stuff.
Indeed, my Short Report subscribers rode the oil slide all the way down to gains of almost 20% in just six weeks with our short sale of the US Oil Fund (USO). We covered that trade last week, and then - just this past Monday - I wrote the following in The Short Report...
I ended the report by giving my single best trading idea in the oil sector.
The Trading Gods must have been feeling generous on Tuesday morning. The oil stocks, as represented by the Oil Services ETF (OIH), declined briefly at the opening but quickly turned around and are now about 7% higher.
As for my single best trading idea? It’s up 60% in just two days.
Granted, two good days in the oil patch do not necessarily make for a sustainable trend. But given the severity of the recent decline and the overwhelmingly bearish sentiment, my sense is it’s just the beginning of a tradable rally...
Best Regards and Good Trading,
The Dow is now 53 Points from its all-time high.
Big Banks Heating Up: Bank of America, Citigroup hit new 52-week highs.