Tag: Crude Oil

Should You Buy Crude Oil Or Gold?

Posted on by The INO.com Team

One of the things I love about trading is how the dynamics of markets change. Change can happen quite quickly in many instances and quite slowly in others. In today's video, I'm going to be looking at some slow and fast changes in crude oil, gold, as well as the major markets.

I will also be looking at tools that you can use to spot changes and accelerations in markets and how you can set these tools up to work for you.

September promises to be a very choppy month as the markets settle down after the dramatic downturn we all witnessed in late August. One of the great things about the market is you don't have to be in the market all the time, you can be on the sidelines. Having a position on the sidelines is what I call the third position, there is nothing wrong with just observing the market from the safety of sidelines.

Two days ago, the gold market gave us a buy signal which I will be taking a look at in today's video. Continue reading "Should You Buy Crude Oil Or Gold?" →

The Unconventional Way To Play Oil In FX

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Will Oil continue to fall? That is still a question with no definitive answer. But as I emphasized in my latest article on Oil, there's a growing chance of an Oil rebound. And even if an Oil rebound doesn't eventually materialize it's prudent to have a strategy in place. In this article, we'll focus on a strategy that is slightly less common. Of course, you could just take a naked bet on an Oil-oriented currency, e.g. the Norwegian Krone or the Canadian Loonie. But those trades could easily and quickly tank if the signals for an Oil rebound turn out to be false. So what is this unconventional way? Don't short/buy a petro currency against a currency unrelated to oil (e.g. Dollar, Yen or Euro). Instead, buy or sell a petro currency vs. a peer that is deemed a commodity currency, but a non-petro one. That could prove to be a much safer play.

Trading Correlated Currencies Reduces Risk

When you trade correlated currencies against each other, such as the NOK and Aussie, you have a reduced upside. While that's a true statement, there are also big benefits. When there is a short-term gap in performance, there is a higher likelihood that this gap will close. And that provides an opportunity that is rather easy to spot. Then, too, the downside is also more limited, so while the profit might be reduced so are the risks. In fact, if you compare the potential of correlated trades vs. uncorrelated, those trends tend to be slower moving and generate fewer profits. However, it compensates the investor with more certainty (the gaps almost always close), making them less volatile and less risky. Continue reading "The Unconventional Way To Play Oil In FX" →

Oil's Slippery Slope: How Far Will Prices Fall?

Posted on by The INO.com Team

By Elliott Wave International

Editor's note: You'll find the text version of the story below the video.

Recall crude oil's dramatic 2008 price collapse. The high that year was in July at $147.50 a barrel. By December, the price had plummeted to $30.28.

This chart shows how Elliott Wave Theorist subscribers were warned ahead of time. Continue reading "Oil's Slippery Slope: How Far Will Prices Fall?" →

Is It Time to Take Profits on Oil Refining Stocks? (re-visited)

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


I wrote on February 24th about whether the time had come to take profits on oil refining stocks like Tesoro, Valero, and others. (My conclusion was to hold the stocks for the time being, but to keep a close eye on them).

Since then, oil refiners have continued rising (generally), as oil prices have showed continuing weakness – especially in the last 30 days. Crude oil, of course, is the key input for refiners, so refiners benefit when its raw materials prices are low. Nymex crude fell below $50/bbl Wednesday, having fallen from $61 on June 23, 2015, and from $107 on June 20, 2014 (data from eia.gov).

Here's an updated table showing performance of selected refiners through July 22:

On Thursday, July 23rd, oil and refining stocks both fell. But more often recently, it's been… Continue reading "Is It Time to Take Profits on Oil Refining Stocks? (re-visited)" →

Surprise, Greece Has No Money

Posted on by The INO.com Team

It just seems to this observer that the Greek kabuki dance is never ending. How can banks keep lending money to a country that is insolvent? That seems a little backward and just stupid to me. What do you think of the situation in Greece?

Here's the reality of the situation, Greece is going to default, the bankers may as well get ready to write off those loans as the money is not coming back. The next question is, whose next, Portugal, Spain or Italy? The next buzzword that is going to come out of all this is contagion. I think when Greece exits the eurozone it will be good for the euro longer-term. Think of it like when a company announces bad earnings and fires the CEO. The stock price has anticipated and discounted all the bad news and for the most part things get better over time for that company. The euro is the same way as pretty much all the bad news is out, except the actual exit of Greece from the euro.

Sooner or later it's going to come to crunch time and time is getting short. Angela Merkel and Germany are going to have to swallow their pride and make some important decisions very soon.

So onto the only economy that seems to be working and that is the US. Today I'm are going to be looking at the major indices to see if they are beginning to tire or getting ready for another upward push.

I'm also going to be looking at three stocks today. Continue reading "Surprise, Greece Has No Money" →