This commentary is from a long-time reader and newsletter subscriber, who has been a friend and contributor way back to my "Personal Finance and Investing" days at Suite101 back in the early 2000s. Trekkies will get a chuckle from his signature.
-------- Forwarded Message --------
|Subject:||Short Squeeze on Oil|
|Date:||Wed, 6 May 2015 14:24:10 -0500 (GMT-05:00)|
|From:||John Stolberg <qout@....>|
|To:||Kirk Lindstrom |
Oil spiked up today on the first US crude inventory drawdown in a long time. However, a closer look at the data shows that US imports of crude last week hit an 18-year low. While the trend lower for imports is true, last week's data was an anomaly. Less crude was offloaded from tankers, so some had to be drawn from inventory.
Oil is up significantly since the retest of the low I predicted. A correction is possible. The spike today probably took out some of the short sellers, but I don't trust the bulls to carry this market higher. If invested in oil, a fairly tight stop-loss would seem to be prudent.
I'm just making observations, not giving investment advice., and I tend to be early.
Thanks John!PS During our Suite101 days I signed my posts with "Kirk out"
PSS John sent me this on 5/6/15 but I only now (7/9/15) had time to publish it. Click John Stolberg to read his most recent article.