When stocks go down, oil goes up. When stock go down BIG, oil really goes up! Just like a seesaw there are so many things that adjust when other things move. It is said that money does not just go away and disappear, it just finds a better place to move. Gold and oil spiked today due to the drop in the stock market getting news of unemployment and foreclosure numbers looking real sad. So money moved out of the market and into speculative oil. The move of this money was so large that the jump in oil was $10 barrel, and gold moved up $24 and ounce. I heard a story that hedge fund managers are taking advantage of a loophole in buying oil that is accelerating the upswing in price. Smart investors will now see that there is a HUGE imbalance in the supply and demand of oil that should make a large swing happen in the other direction to bring oil prices down. With production in the US slowing and airline companies slashing the amount of flights they normally have in the air, we’ll see the demand for oil dropping quickly. Oil prices are just way to overinflated to sustain its current level and the pendulum is beginning to make its turn and will gain the momentum it needs to get prices back in line. If you educate yourself in understanding how to make money when a market goes down, now is the time to initiate the trades for oil prices to retreat and make you profitable.
Too bad we couldn’t hedge our gas prices earlier. If we could have, I know my wife and I would have bought $2000 worth of gas in January. We knew prices were gonna continue to rise then, but we didn’t have a way to do it. I heard some states have ways to do it, maybe California should look into it.
