BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Airline Stocks Dive as Oil Futures Soar]]>http://www.bloggingstocks.com/2011/02/22/airline-stocks-dive-as-oil-futures-soar/http://www.bloggingstocks.com/2011/02/22/airline-stocks-dive-as-oil-futures-soar/http://www.bloggingstocks.com/2011/02/22/airline-stocks-dive-as-oil-futures-soar/#commentsFiled under: , , , , ,

DAL logoDelta Air Lines (DAL - option chain) stock is trading lower today along with other airlines this morning, hurt by rising oil futures. Oil futures shot up over 7% this morning in response to growing political turmoil in Libya. Libya is the largest oil producer in North Africa, and is responsible for 2% of global daily output. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on DAL.

This morning, DAL opened at $10.99. So far today the stock has hit a high of $10.99 and a low of $10.59. As of 12:35, DAL is trading at $10.65, down $0.85 (-7.3%). The chart for DAL looks bullish and S&P gives DAL a positive 4 STARS (out of 5) buy ranking.

Continue reading Airline Stocks Dive as Oil Futures Soar

Airline Stocks Dive as Oil Futures Soar originally appeared on BloggingStocks on Tue, 22 Feb 2011 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>airlinesDeltainthenewsInvestors ObserverLibyaoil futuresoptionsTue, 22 Feb 2011 13:30:00 EST<![CDATA[Dr. Gloom, Boom and Doom Gets Bullish on the U.S. and Europe]]>http://www.bloggingstocks.com/2011/01/19/dr-gloom-boom-and-doom-gets-bullish-on-the-u-s-and-europe/http://www.bloggingstocks.com/2011/01/19/dr-gloom-boom-and-doom-gets-bullish-on-the-u-s-and-europe/http://www.bloggingstocks.com/2011/01/19/dr-gloom-boom-and-doom-gets-bullish-on-the-u-s-and-europe/#commentsFiled under:

Marc Faber, who writes the Gloom Boom & Doom Report newsletter, has a flare for the dramatic. He once recommended framing a $100 U.S. bond to teach our children a lesson about the perils of inflation. But he has made some good calls over the years, such as to dump stocks a week before the October 1987 crash. He even shorted stocks in 1999 (it was a bit early) and went bearish before the crash of 2008.

Interestingly enough, Faber is actually getting optimistic, especially about the U.S. and Europe (this is according to an interview on CNBC). He likes the traction in the economies. In fact, it does look like the global economic recovery is a reality.

Continue reading Dr. Gloom, Boom and Doom Gets Bullish on the U.S. and Europe

Dr. Gloom, Boom and Doom Gets Bullish on the U.S. and Europe originally appeared on BloggingStocks on Wed, 19 Jan 2011 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>GloomBoom and DoominthenewsMarc Faberoil futuresWed, 19 Jan 2011 15:20:00 EST<![CDATA[Crude Drops After Inventory Data]]>http://www.bloggingstocks.com/2010/06/23/crude-drops-after-inventory-data/http://www.bloggingstocks.com/2010/06/23/crude-drops-after-inventory-data/http://www.bloggingstocks.com/2010/06/23/crude-drops-after-inventory-data/#commentsOil futures furthered their losses Wedsneday morning after data showed unexpected inventory gains during the past week. Late Tuesday, the American Petroleum Institute (API) announced that crude inventories increased by 3.69 million barrels and that gasoline inventories increased by 810,000 barrels. Expectations called for a decline of 1.5 million barrels in crude and 500,000 barrels in gasoline. This news caused a drop in crude futures, as concerns over heavy supply and weak demand started to surface.

Continue reading Crude Drops After Inventory Data

Crude Drops After Inventory Data originally appeared on BloggingStocks on Wed, 23 Jun 2010 14:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>crudeinthenewsoil futuresWed, 23 Jun 2010 14:10:00 EST<![CDATA[Oil Futures: A Market in Need of Reform]]>http://www.bloggingstocks.com/2010/05/07/oil-futures-a-market-in-need-of-reform/http://www.bloggingstocks.com/2010/05/07/oil-futures-a-market-in-need-of-reform/http://www.bloggingstocks.com/2010/05/07/oil-futures-a-market-in-need-of-reform/#commentsFiled under: ,

Oil futures market should be reformedOil plummeted $4.26 to $75.63 per barrel on Thursday in near-panic fashion amid concerns of Europe's debt woes. The huge drop provides more evidence that the oil futures market should be reformed.

Currently, the oil market, like other commodities, is dominated by traders -- that is, by players who have no interest in taking possession of oil or in hedging the cost of oil used in their operations.

Continue reading Oil Futures: A Market in Need of Reform

Oil Futures: A Market in Need of Reform originally appeared on BloggingStocks on Fri, 07 May 2010 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>May 6 Stock Market Plungeoil futuresoil pricesFri, 07 May 2010 10:30:00 EST<![CDATA[Oil Futures Up on Obama's State of the Union Address]]>http://www.bloggingstocks.com/2010/01/28/oil-futures-up-on-obamas-state-of-the-union-address/http://www.bloggingstocks.com/2010/01/28/oil-futures-up-on-obamas-state-of-the-union-address/http://www.bloggingstocks.com/2010/01/28/oil-futures-up-on-obamas-state-of-the-union-address/#commentsFiled under: ,

Last night was President Obama's first State of the Union address. Already, the oil market is benefiting from the speech, as it gave a sense of optimism for the economy, according to some analysts. That is, if you can call a 23-cent jump in futures a benefit.

The speech stressed job creation and the belief that the worst of the economic crisis is over, which has trickled over to investors (and who said trickle-down economics don't work?). Combine last night's Presidential address with the Federal Reserve's decision to leave monetary policy unchanged and you have the makings of a temporary bump for the market.

Continue reading Oil Futures Up on Obama's State of the Union Address

Oil Futures Up on Obama's State of the Union Address originally appeared on BloggingStocks on Thu, 28 Jan 2010 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>economic recoveryEconomicRecoveryinthenewsoiloil futuresoil pricesOilFuturesOilPricesPresident ObamaPresidentObamaState of the UnionStateOfTheUnionThu, 28 Jan 2010 10:00:00 EST<![CDATA[China threatens to default on oil derivatives trades]]>http://www.bloggingstocks.com/2009/09/12/china-threatens-to-default-on-oil-derivatives-trades/http://www.bloggingstocks.com/2009/09/12/china-threatens-to-default-on-oil-derivatives-trades/http://www.bloggingstocks.com/2009/09/12/china-threatens-to-default-on-oil-derivatives-trades/#commentsFiled under: , , , ,

About one year after the Lehman bankruptcy, we are getting rumors of more impending bankruptcies, this time from China.

The problem started last year when the price of oil dropped from $147 to $32 per barrel. Many companies use the futures markets to hedge their buying of oil. When prices skyrocket, they get scared and buy futures contracts for future delivery to lock in a price and to be assured of getting the product. So, some companies were buying oil at the height of the market last year. Companies that place hedges usually leave them on until delivery. What happened was that when the price of oil collapsed, these companies were still holding high-priced contracts. They saw the price plummet and took horrendous losses.

Continue reading China threatens to default on oil derivatives trades

China threatens to default on oil derivatives trades originally appeared on BloggingStocks on Sat, 12 Sep 2009 16:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AICFAir ChinaCEAChina Eastern AirlinesChina Ocean Shippinginthenewsoil futuresSat, 12 Sep 2009 16:10:00 EST<![CDATA[Has SemGroup caused the recent oil runup and selloff?]]>http://www.bloggingstocks.com/2008/07/25/has-semgroup-caused-the-recent-oil-runup-and-selloff/http://www.bloggingstocks.com/2008/07/25/has-semgroup-caused-the-recent-oil-runup-and-selloff/http://www.bloggingstocks.com/2008/07/25/has-semgroup-caused-the-recent-oil-runup-and-selloff/#commentsFiled under: , ,

There are many factors that affect oil prices. Fundamental factors such as global supply and demand and dollar moves are often cited. But many also say that traders play a big role in affecting oil prices fluctuations. No doubt, fundamentals are behind oil's long-term uptrend. And it is the dollar's weakness of the past few years that has supported the trend. But short term? Could traders' short covering be the reason behind oil's recent run-up to nearly $150 a barrel?

Perhaps, but that's behind us. Oil prices have retreated more than $20 dollars since. What caused that? Have the fundamentals changed? Some say global demand is bound to slow as the global economy weakens, but others say supply concerns due to geopolitical unrest are also growing. Has the dollar strengthened? A little, but then it declined right back Thursday after a housing report showed recovery is still far off. And what about traders?

Well, here's where The Wall Street Journal as well as Reuters bring an interesting theory. They say that the rise and fall in oil prices coincided with energy company SemGroup L.P.'s (mis)fortunes. SemGroup is a little known private company that transports, stores and distributes crude oil and refined products. It is also the parent of pipeline operator SemGroup Energy Partners L.P. (NADSAQ: SGLP). SemGroup L.P. filed for Chapter 11 bankruptcy protection Tuesday. According to the Journal, "Changes in its hedging strategies coincided with big moves in oil recently."

Continue reading Has SemGroup caused the recent oil runup and selloff?

Has SemGroup caused the recent oil runup and selloff? originally appeared on BloggingStocks on Fri, 25 Jul 2008 14:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>commoditiesinthenewsoiloil futuresOilFuturessecsemgroupsglpshortsFri, 25 Jul 2008 14:01:00 EST<![CDATA[Is Bernanke bullish on the economy?]]>http://www.bloggingstocks.com/2008/06/10/is-bernanke-bullish-on-the-economy/http://www.bloggingstocks.com/2008/06/10/is-bernanke-bullish-on-the-economy/http://www.bloggingstocks.com/2008/06/10/is-bernanke-bullish-on-the-economy/#commentsFiled under: , , , , ,

Fed Chairman Ben Bernanke was in Massachusetts on Monday, speaking at a conference, according to this article. As you can imagine, he had some things to say about the economy. Believe it or not, they were actually encouraging, and it should cause many to feel at least a little more comfortable, even though the world appears to be ending thanks to really expensive oil futures. In fact, if Bernanke is to be believed, we don't have a lot to worry about.

Well, we do have to worry about a few things, but Bernanke believes that a "substantial downfall" in the economy is not as guaranteed as recent market action has suggested. I'm not sure if he's correct about this. With gas prices hitting a record of an average $4 per gallon, the psychological fallout is going to be immense. Add to that the recent employment data, and the economy seems to have found a wonderful recipe for disaster. But what I like about Bernanke's comments is that they too can hold psychological sway. He believes that the net outlook isn't any worse than before, and many observers suspect that he is done lowering rates. While some might look upon that stance as a harbinger of positive tidings, I think we have to remember that Bernanke's hands are tied right now, and that he has been put in a damned-if-you-do-damned-if-you-don't scenario. If he drops rates any further, then the dollar becomes less valuable on a global basis and inflation becomes increasingly problematic. If he pauses, then what about growth? It all goes back to oil and the dreaded specter of stagflation.

Continue reading Is Bernanke bullish on the economy?

Is Bernanke bullish on the economy? originally appeared on BloggingStocks on Tue, 10 Jun 2008 09:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ben bernankeBenBernankeCCitigroupeconomyfeaturedFederal ReserveFederalReserveGEGeneral ElectricGeneralElectricoil futuresOilFuturesstagflationWal-MartWMTTue, 10 Jun 2008 09:32:00 EST<![CDATA[Economics Roundtable: Oil bubble: yes; price fixing: no]]>http://www.bloggingstocks.com/2008/06/02/economics-roundtable-oil-bubble-yes-price-fixing-no/http://www.bloggingstocks.com/2008/06/02/economics-roundtable-oil-bubble-yes-price-fixing-no/http://www.bloggingstocks.com/2008/06/02/economics-roundtable-oil-bubble-yes-price-fixing-no/#commentsFiled under: , , ,

The "Totally Informal Economics Roundtable" (TIER) met this week. Readers of this space know that the esteemed Roundtable achieves a quorum whenever yours truly and my three astute economist friends from graduate school convene to discuss matters economic... or to celebrate the birthday of one our school-age children.

This week's the topic was oil's remarkable 4-year run to $135 per barrel.

The TIER agreed that, yes, speculators, traders, hedge funds, and other institutional investors had driven oil to a 'bubble' price or level -- but not due to any conspiracy or coordinated effort to push prices higher.

Rather, the TIER agreed that speculators bought oil futures and other oil instruments: because a) they believe the price of oil is headed higher, and/or b) they believe they'll benefit in some way from an oil-long position.

Continue reading Economics Roundtable: Oil bubble: yes; price fixing: no

Economics Roundtable: Oil bubble: yes; price fixing: no originally appeared on BloggingStocks on Mon, 02 Jun 2008 18:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>energy crisisgasoline priceshedge fundsHedgeFundsinvestment fundsoiloil futuresoil pricesoil shockMon, 02 Jun 2008 18:48:00 EST<![CDATA[Regulators to probe possible price manipulation in oil market]]>http://www.bloggingstocks.com/2008/05/31/regulators-to-probe-possible-price-manipulation-in-oil-market/http://www.bloggingstocks.com/2008/05/31/regulators-to-probe-possible-price-manipulation-in-oil-market/http://www.bloggingstocks.com/2008/05/31/regulators-to-probe-possible-price-manipulation-in-oil-market/#commentsFiled under: , , ,

U.S. regulators Friday disclosed a broad nationwide investigation into potential oil-market manipulation and said they are expanding surveillance of energy markets, The Wall Street Journal reported Friday.

The Commodity Futures Trading Commission announcement of an ongoing and widening inquiry occurs amid a 4-year rise in crude oil prices in which gasoline, diesel, and heating oil prices hit record highs, Reuters reported Friday.

Oil closed Friday up 73 cents to $127.35 per barrel. Oil has risen about 100% in the past 12 months.

Many Congressional officials and consumer groups have been arguing for a systematic investigation into futures prices, asserting that institutional investors and other speculators have manipulated oil prices and driven them "artificially higher."

Others, including economists and oil executives, argue that the price increases have more to do with the sector's bullish fundamentals, including inadequate crude oil production growth amid rising demand.

Oil Analysis: Strong evidence suggests that the bulk of oil's 4-year bullish run is rooted in fundamentals, with the reduction in the global safety cushion -- the spare oil between daily global oil supply and demand -- accounting for today's near-record oil prices. Still, that's not to say a rigorous inquiry would not yield compelling data or new insights. One area of interest that the inquiry will explore: whether oil storage operators have issued misleading information about oil in their tanks to profit from oil trades, Reuters reported Friday.

Regulators to probe possible price manipulation in oil market originally appeared on BloggingStocks on Sat, 31 May 2008 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Commodity Futures Trading Commissionenergy crisisgasoline priceshedge fundsinstitutional investorsinthenewsoil futuresoil pricesoil sectoroil shockOPECpension fundsU.S. CongressSat, 31 May 2008 10:10:00 EST<![CDATA[Soros: Speculators driving oil price to bubble levels]]>http://www.bloggingstocks.com/2008/05/27/soros-speculators-driving-oil-price-to-bubble-levels/http://www.bloggingstocks.com/2008/05/27/soros-speculators-driving-oil-price-to-bubble-levels/http://www.bloggingstocks.com/2008/05/27/soros-speculators-driving-oil-price-to-bubble-levels/#commentsFiled under: , , , , , ,

Billionaire investor George Soros said speculators are playing a major role in oil's record price rise. He also argued that the sky-high $130 per barrel price looks like a bubble, The Daily Telegraph reported Tuesday.

Soros said "speculation . . . is increasingly affecting the price" and that oil now has "this parabolic shape which is characteristic of bubbles." However, he qualified his remarks by stating that the bubble would not burst "until both the U.S. and Britain were in recession, after which prices could fall dramatically."

Oil fell about $2 to $130.12 per barrel in mid-day Tuesday trading after data showed Americans are cutting back their gasoline consumption amid record-high gasoline prices approaching $4 per gallon in several regions of the country, Bloomberg News reported. U.S. gasoline consumption has fallen for about fourth straight months, on a year-over-year basis, according to U.S. Department of Energy data. Oil is up 100% in the past 12 months, and about 480% since 2002.

Continue reading Soros: Speculators driving oil price to bubble levels

Soros: Speculators driving oil price to bubble levels originally appeared on BloggingStocks on Tue, 27 May 2008 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chinafeaturedgasolinegasoline pricesGeorge SorosIndiaoiloil futuresoil pricesoil shockOPECSorosspeculatorsU.S. Energy Information AdministrationTue, 27 May 2008 14:20:00 EST<![CDATA[Oil falls below $114 as weekly inventories rise more than expected]]>http://www.bloggingstocks.com/2008/04/30/oil-falls-to-114-after-weekly-inventories-rise-more-than-expect/http://www.bloggingstocks.com/2008/04/30/oil-falls-to-114-after-weekly-inventories-rise-more-than-expect/http://www.bloggingstocks.com/2008/04/30/oil-falls-to-114-after-weekly-inventories-rise-more-than-expect/#commentsFiled under: ,

Crude oil fell below $114 Wednesday after a U.S. Energy Information Administration report (pdf) indicated weekly oil inventories rose more than double forecast.

U.S. oil inventories increased 3.8 million barrels for the week ending April, 25, 2008. Economists surveyed by Bloomberg News had expected a 1.9 million barrel increase.

Oil fell $1.78 to $113.85 per barrel Wednesday at mid-day, after trading above $116 earlier in the session. The other major energy commodities also fell at mid-day. Heating oil declined about 3 cents to $3.21 per gallon, unleaded gasoline fell 2 cents to $2.92 per gallon, and natural gas declined dropped about 9 cents to $10.76 per million BTUs.

Continue reading Oil falls below $114 as weekly inventories rise more than expected

Oil falls below $114 as weekly inventories rise more than expected originally appeared on BloggingStocks on Wed, 30 Apr 2008 13:36:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gasolinegasoline pricesinthenewsoiloil futuresoil pricesU.S. Energy Information AdministrationWed, 30 Apr 2008 13:36:00 EST<![CDATA[Is the price of oil 'artificially' high?]]>http://www.bloggingstocks.com/2007/12/11/is-the-price-of-oil-artificially-high/http://www.bloggingstocks.com/2007/12/11/is-the-price-of-oil-artificially-high/http://www.bloggingstocks.com/2007/12/11/is-the-price-of-oil-artificially-high/#commentsFiled under: , , , , , , , , , , ,

Discussion in financial and public policy circles appears to building regarding increased monitoring of energy markets, as well as, at minimum, inquiries into whether oil prices have been manipulated.

One group, closetheenronloophole.com - - a coalition of oil dealers (the people who deliver heating oil in trucks, etc.) and other groups - - argues that certain unregulated energy trading platforms provide an environment for what the group calls "excessive speculation and energy price manipulation."

Capitol Hill

In Washington, several lawmakers have requested inquiries of the energy markets. Among them are U.S. Senators Maria Cantwell (D-Washingotn), Dianne Feinstein (D-California), and Ron Wyden (D-Oregon), who sent a letter to the chairmen of the Commodity Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC) giving them 45 days "to develop a plan to deliver effective oversight for energy markets and implement anti- manipulation provisions."

Continue reading Is the price of oil 'artificially' high?

Is the price of oil 'artificially' high? originally appeared on BloggingStocks on Tue, 11 Dec 2007 16:16:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bondsCFTCChinacommoditiesDianne Feinsteinemerging marketsFERCgasolinegasoline pricesglobal economyheating oilheating oil pricesIndiaIranIraqMaria Cantwelloiloil futuresoil pricesoil productionOPECreal estateRon WydenstocksU.S. CongressUnited StatesVenezuelaTue, 11 Dec 2007 16:16:00 EST<![CDATA[Trade idea on AMR upgrade]]>http://www.bloggingstocks.com/2007/05/16/trade-idea-on-amr-upgrade/http://www.bloggingstocks.com/2007/05/16/trade-idea-on-amr-upgrade/http://www.bloggingstocks.com/2007/05/16/trade-idea-on-amr-upgrade/#commentsFiled under: , , , , , , , ,

AMR Corporation (NYSE: AMR) opened at $25.60. So far today the stock has hit a low of $25.60 and a high of $26.80. As of 2:15, AMR is trading at $26.53, up $1.15 (4.5%).

After hitting a one year high of $41.00 in January, the stock has trickled downward over the past four months. Soleil upgraded the airline industry as a whole today, and specifically American Airlines, from hold to buy, giving shares a boost. Also mentioned was Continental Airlines (NYSE: CAL). Oil futures, which are finally relaxing somewhat over the past two weeks are also helping airline stocks. Recent technical indicators for AMR have been bearish but improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $20 range. AMR hasn't been below $20 since September and has shown support around $24. This trade could be risky if fuel prices rise again, but even if that happens, this position could be protected by the support the stock formed around $20 in August.

Brent Archer is an options analyst and writer at Investors Observer. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You When To Dump A Stock. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AMR or CAL.

Trade idea on AMR upgrade originally appeared on BloggingStocks on Wed, 16 May 2007 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AMRCALoil futuresOilFuturesoptionsWed, 16 May 2007 14:20:00 EST<![CDATA[ConocoPhillips lifted by oil futures]]>http://www.bloggingstocks.com/2007/04/20/conocophillips-lifted-by-oil-futures/http://www.bloggingstocks.com/2007/04/20/conocophillips-lifted-by-oil-futures/http://www.bloggingstocks.com/2007/04/20/conocophillips-lifted-by-oil-futures/#commentsFiled under: , , ,

ConocoPhillips (NYSE: COP) opened at $70.05. So far today the stock has hit a low of $69.37 and a high of $70.70. As of 12:20, COP is trading at $70.38, up $1.10 (1.6%).

After hitting a one-year high of $74.89 in December, the stock has been slowly recovering over the past four months from a sharp dive it took at the turn of the new year. The front month crude oil futures contract is up 75 cents on the day, and front month gasoline futures are up almost 1%, boosting COP shares in early trading. Recent technical indicators for COP have been bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $60 range. COP hasn't been below $60 since October and has shown support around $67 recently. This trade could be risky if oil prices drop below $60 a barrel, but even if this happens, this position could be protected by the strong historical support around $63, combined with the stock's 200-day moving average, which is currently at $65 and rising.

Brent Archer is an options analyst and writer at Investors Observer. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You When To Dump A Stock. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At press time, Brent neither owns nor controls a position in COP.

ConocoPhillips lifted by oil futures originally appeared on BloggingStocks on Fri, 20 Apr 2007 12:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ConocoPhillipsCOPoil futuresOilFuturesFri, 20 Apr 2007 12:42:00 EST<![CDATA[Higher oil: Trouble for the consumer sector]]>http://www.bloggingstocks.com/2007/03/28/higher-oil-trouble-for-the-consumer-sector/http://www.bloggingstocks.com/2007/03/28/higher-oil-trouble-for-the-consumer-sector/http://www.bloggingstocks.com/2007/03/28/higher-oil-trouble-for-the-consumer-sector/#commentsFiled under: , ,

Unsubstantiated rumors overnight that Iran fired on U.S. navy warships and heightened concerns over Iran's detention of 15 British sailors have spurred strong buying in oil futures. That's helped drive the price of the May West Texas Intermediate Crude contract through key short-term resistance at $63.75 per barrel, setting the stage for further technical gains in the days ahead.

The obvious play here is to buy oil or oil-related shares. However, weak economic data, including today's lower-than-expected durable goods report for February, suggests that it might make more sense to bet against stocks in the consumer sector. Research I've done points to a strong inverse relationship between energy prices and the performance of consumer-related shares.

One strategy worth considering (for those with the appropriate risk profile): selling short or buying inexpensive, in-the-money put options on the S&P Consumer Staples Select Sector SPDR exchange-traded fund (AMEX: XLP) or the S&P Consumer Discretionary Select Sector SPDR ETF (AMEX: XLY).

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World.

Higher oil: Trouble for the consumer sector originally appeared on BloggingStocks on Wed, 28 Mar 2007 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>oil futuresOilFuturesoptionsWed, 28 Mar 2007 11:40:00 EST<![CDATA[Crude futures' rise pushes Chevron up]]>http://www.bloggingstocks.com/2007/03/06/crude-futures-rise-pushes-chevron-up/http://www.bloggingstocks.com/2007/03/06/crude-futures-rise-pushes-chevron-up/http://www.bloggingstocks.com/2007/03/06/crude-futures-rise-pushes-chevron-up/#commentsFiled under: , , ,

Chevron Corp. (NYSE: CVX) opened at $67.28. So far today the stock has hit a low of $66.77 and a high of $67.49. As of 12:50 this afternoon, CVX is trading at 67.05, up 0.62 (0.9%).

After hitting a one year high of 76.20 in December, the stock has lost about 13% over the past three months. Oil futures are rising today after slipping over the last two trading days, giving CVX a boost in early trading. The technical indicators for this stock have been bearish and steady, while S&P gives CVX a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $60 range. CVX hasn't been below 60 since June and has shown support around 68. This trade could be risky if oil takes a dive, but even if CVX retreats, strong historical support around 61 could protect this position, plus the stocks 200 day moving average at 66.75 could also provide support.

Brent Archer is an analyst on the move at Investors Observer. (Free Subscription)

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

Crude futures' rise pushes Chevron up originally appeared on BloggingStocks on Tue, 06 Mar 2007 12:52:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chevronoil futuresOilFuturesTue, 06 Mar 2007 12:52:00 EST<![CDATA[Crude tests psychological $60 mark]]>http://www.bloggingstocks.com/2006/12/27/crude-tests-psychological-60-mark/http://www.bloggingstocks.com/2006/12/27/crude-tests-psychological-60-mark/http://www.bloggingstocks.com/2006/12/27/crude-tests-psychological-60-mark/#commentsFiled under: , , , ,

Oil has been heading towards the $60 level over the past couple of sessions and is trading down again today. Unusually warm weather has created downward pressure on precious crude, which last week was looking as if it was about to head up to the mid $60's to close out the year.

February futures for oil have traded down $0.36 today to $60.74, and oil is trading right at its intra-day low of $60.73.

If oil is not able to hold above $60 we could see prices fall steeply to start off 2007 and head down towards the mid $50's. Warm weather and lack of trust in OPEC's ability to keep its thumb on oil production are, as usual, the major factors weighing on the oil market.

With most of the U.S. experiencing warm weather and the next possible OPEC cuts coming in February at the earliest, there is not a whole lot that could come into the market and push prices higher in the near future. Of course Iran will be playing a major role moving forward as the world continues to pay attention to their nuclear program. This could be a catalyst for some destabilizing geo-political unrest as we start off the new year.

Continue reading Crude tests psychological $60 mark

Crude tests psychological $60 mark originally appeared on BloggingStocks on Wed, 27 Dec 2006 13:04:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>crudeoiloil futuresOilFuturesWed, 27 Dec 2006 13:04:00 EST