Better Fill up today

[frawin]

Dan, below is a news blurb that was posted on one of the news websites. If you look at the far outter months some of them were flat to up on crude oil and the same on Natural Gas, I think much of the sell off is what we discussed earlier today, the economy is going to get worse and Precious metals and Cash will be a good thing. Maybe Bush's speech yesterday had some psycological impact or created some pessimism. If the dollar would improve I think we could see some lower near term oil prices.

Frank
Investors have a slew of gloomy news to digest today, but the markets picked up after dive in the price of oil this afternoon.

Light, sweet crude oil plunged $7.30 to $137.88 a barrel by midday.

"We're getting to the point where the market's looking at an increasing likelihood of a deep recession," James Ritterbusch, president of Ritterbusch & Associates, told Bloomberg News. "Traders are looking at this decline in the stock market and saying oil demand is going to be a lot weaker than we thought."

[frawin]

Dan, alot of the NYMEX business I have done in the past few weeks has been Costless collars on both Crude Oil and Natural Gas, buy a put and sell a call , you are covered at the floor price you paid for in the put, if the ceiling price on the call is breeched on the upside you pay everything over the call value, I locked in some crude oil at $95.00 Floor and $135.00 Ceiling for June thru October, I thought he might have to pay some for July and the outter months on the crude but maybe not. The main operator that wanted them is a pretty astute individual when it comes to politics and the Stock Market, he wanted some downside protection as he felt it being an election year the Republicans would try to push oil down to help their cause and his main reason was that our economy will not be able to withstand the price of oil above the $120.00 range for an extended period of time

[Catwoman]

Let's hope that the downward trend continues!

[frawin]

Dan the outter momths trading in Crude is pretty thin, Natural gas is trading more a little more in the outter months, I am guessing it is because of the Winter Months and the lower than usual Gas inventories at this time.

[frawin]

August Crude traded down considerably today, settling at $138.74 Down $6.44, it traded down in the negative $4.00 range all the way out to December 2015 Futures, Natural Gas traded down and settled at $11.477, down $0.482 on the day and traded down all the way out by a negative $0.40 cent range.   Hopefully this will scare the longs into selling and push it down further in the coming days.

[DanCookson]

Really good to see the longs down that much and not just the shorts.  Maybe the pressure will drift it off and get it going in the other direction.  I think some positive news from the banking industry or some strength in our dollar would help even further.

[frawin]

Really good to see the longs down that much and not just the shorts.  Maybe the pressure will drift it off and get it going in the other direction.  I think some positive news from the banking industry or some strength in our dollar would help even further.

Dan, I bet the shorts took a little sigh of relief thinking that might get to cover for less.
Frank

[pam]

So...how much lower does everybody think the markets are goin to go?

[frawin]

Pam which markets are you referring to, if it is Crude Oil and/or Natural Gas, they could go either direction depending on what happens in the world, that market is so volital and so many things can have a big impact on it.If you are talking about the stock market,  there doesn't seem to be many bright spots out there at the moment to make it move up. Certain sectors could move up but overall I think it will continue to drift down some, the big question for all the markets is the election and the price of world oil, the world political situation and of course Iran could be the wild card. That is my 2 cents for whatever it is worth, which is probably nothing.

[Diane Amberg]

That depends . copper is worth more now. We've seen cases here where thieves are stealing copper downspouts, air conditioner pipes and even mausoleum doors. So your pennies are worth something after all.