Posted on May 4, 2009 by Adam
I’m hearing a lot of buzz about oil. China’s numbers today have helped commodities a bit, but I hear traders whispering about a range capped by the level of $55/barrel.
I looked into this a little bit more. If you look at a point and figure chart of crude oil, printing 55 will put it onto [...]
Posted on March 12, 2009 by Adam
Arbitrage is the practice of profiting from discrepancies in prices between similar assets. Looking at Exhange Traded Funds that track crude oil, I see ample opportunities for arbitrage in the energy space.
I noticed this last night when I was looking at a relative strength chart of USO compared to Crude Futures. USO is an ETF [...]
Posted on February 13, 2009 by Adam
Over the past month and a half, we’ve seen a really interesting divergence between gasoline and crude oil. The price of gasoline has outpaced oil by quite a bit, setting up a bullish situation for oil refining companies. In short, they can buy oil for cheaper, refine it, and then sell gasoline at higher prices. [...]
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Be on the lookout for an extended pullback.