Sunday, April 3, 2011

Uncertainty remains. Volatility was not present last week (!) The probability of this lasting is not high, according to my (humble) opinion.

Dear Reader,

Results from hypothetical trades last week:  short USO (-4.3%) and long SLV (+1.9%), so the portfolio result is: 0.5*(-4.3%) + 0.5*(+1.9%) = (-2.15%) + (+0.95%) = -1.2%

Seems the uncertainty was way to high for oil to go down. I heard an analyst say that Libya (2% of global oil production) was responsible for a $20 up move. And some people say there is enough oil in Cushing Oklahoma to cover the needs of the USA for (long) enough time ?! :-)
There some 200 mln cars in the US, according to various news sources...

My hypothetical views for next week: Buy SLV, Buy USO, Buy JJA, Sell XLF.

If the stock market goes down, financials will hurt, as far as I can asses.

Disclaimer: Please be advised, this is NOT a reccomendation to buy the mentioned securities, commodities or their derivatives. This is just my personal, hypothetical view on the markets. I do not own any of the mentioned commodities (apart from regular day to day use) or their derivatives traded on exchanges, and options on indices or ETFs, Stocks traded on exchanges and I do not plan to own them in the next 72 hours!

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