ProfessorBurry
Edited
Most of you probably see the big percentage of the $OIL trades I make. For the last 10 years, I've studied and analyzed the Black gold asset and what I've learned is that prices always come back. The perfect timing for trading oil is when the price is at the end of the range - when it's very low - you buy and hold for the long term. When Is high - you sell and hold positions until it goes down. Just never be too greedy. My trades with oil go mostly from 55 up to 75$. Each time the price goes up to new 5$ - I open a short position. As much as the price goes up, better for you - open a new short position. This is a time pattern - it always comes back. Yes OPEC can do what they want, and they want to regenerate some of the money they lost last year, but it's not just them. There are a lot of reasons why $OIL can't be so expensive : 1. Countries can't live with high oil, especially the US, India, and China - once the price goes too high those work powers will put pressure on OPEC. The economy needs normal prices to operate in a normal way. Especially now. 2. American oil companies are slowly going back to a normal level of production because it's very profitable at the moment to pump, so this will flood the bad positioned market. 3. Covid is here to stay, let's not full ourselves. Travel will not be on the pre-pandemic levels for years. No matter how many vaccinated people there are, problems will continue, as you can see now with the Delta and the new 4th wave that is hitting the market with new restrictions, fear, and lockdowns. People are scared to travel. In my country the whole summer was packed with local tourists - never seen the seaside so packed before, so many locals on a holiday in their own county and a small percentage of foreigners. And this was in times when Delta was weak, there were no restrictions as well. For a long time to come - this will be the way people choose their holidays at most - local destinations, no jet fuel needed. 4.The Iranian deal is coming back to the table sooner or later. They just need it badly and will shake hands to resume the pumping and flood the market with Iranian oil. Yes, it might take some time, but this will happen. The US doesn't want expensive oil, they are interested in this deal as well. And nobody wants to risk with the Iranian people and the uranium problem they might bring back. Those are the reasons I'm shorting the black gold and I believe that it should reach the perfect average level at 45$-50$. This is where good profits will be made. Oil is the perfect asset to trade when it reaches record levels in one of the two directions. It always comes back. Very cheap oil or very expensive oil can't live for long, remember that. My last month's results were hit by the spike in the price and the reason that I continued to sell, but as you can see now - it's happening and our portfolio is surging in profits. $OIL $SAOC (Aramco Saudi Arabian Oil Corp) $DRIP $CL.JAN21 $CL.DEC20 $XOM (Exxon-Mobil)
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