montyman

Whither Goes the Price of Oil?

What do you say about gold in such a case?


On Sep 18 12:13 PM ssquared wrote:

> And what will happen to the price of oil if;
> A) the Israelis attack Iran
> B) Iran mines the Staits of Homuz
>
> Answer: As Jackie Gleason used to say: To da moon!

Long Dollar, Short Oil, Hold Gold?

If you think this is a counter-trend trade, for how long do you expect to hold DRR? BTW, was that a typo when you said " I still think it will cost two Euros to buy a buck sometime in the foreseeable future" (or did you mean two bucks to buy a Euro). Thanks.


On Jul 05 11:43 AM Mad Hedge Fund Trader wrote:

> You nailed it. The stage is now set for the dollar. With the US 20
> months into a recession, it’s just a matter of time before the Fed
> pull us back from zero interest rates. With the ECB late to the funeral,
> European Central Bank president, Jean-Claude Trichet, last week reaffirmed
> his commitment to keep their benchmark rate at 1% to restore the
> economy. There’s your trade. The next move in the euro/dollar spread
> will be in favor of the greenback, as the US will be the first out
> of recession. On top of that, you can pile a fading US stock market
> and a back off in commodity prices, which are also dollar positive.
> Thus, you can expect the euro to trade down to the low $1.30s. Mind
> you, this is still a counter trend trade, which I generally try to
> avoid. I still think it will cost two Euros to buy a buck sometime
> in the foreseeable future. For those hardy few willing to scoop up
> some pennies in front of a steam roller, look at the 200% short euro
> ETF (seekingalpha.com/symbo...), which has backed off 34%
> from $63 to $42 since November.