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  • The Disconnect Between Oil and Natural Gas Prices [View article]
    This is a great response..I also believe that crude is trading in tandem with equities right now. There is no fundamental reason for the rally crude has seen over the past 6 months...same as with equities..This rally in my opinion is based off of speculative money, thinking the economy is turning around. SO, it boils down to a simple question: If you think the economy is turning around, then have it being long crude..I, on the other hand, think we are only just getting started in this economic downturn...I, too, think oil is ready for a major pull back along with equities..NG is the only thing out there trading on legit fundamentals right now, and i think long term NG would be a great long play...but not any time soon...I think the play is playing the spread on NG between the front month and december...I think you should see some major contraction..my two cents
    ----------------------...
    Good luck with your long position in oil. I hope that it is not held in commodity futures contracts. The stock market will fall first, then oil will fall and the Dollar will go up out of fear. Other nations markets will follow or even lead as China's stock market has fallen 20% already.

    The stock market and oil charts may even look like they fell off of cliff. Demand is way, way down and the economy sucks and will only get worse due to a huge continuing credit contraction.


    On Aug 23 11:14 AM ManAboutDallas wrote:

    > A plunge in the price of oil? Give your head a shake. How does
    > something plunge in price when its supply is decreasing [read: Peak
    > Oil] while its demand is inexorably increasing [read: BRIC countries'
    > rising demand curve].
    >
    > Time to stop thinking the world starts at the Statue of Liberty and
    > ends at the Golden Gate Bridge.
    >
    > Couple that with the aberration that oil is still priced in US$,
    > declining in value daily now, and about to collapse altogether, and
    > the only direction oil is going is.... up.
    >
    > Sorry if this spoils your lovely, deluded Sunday
    Aug 23 18:19 pm |Rating: +1 0
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