I went down to the crossroads, fell down on my knees.
Down to the crossroads, fell down on my knees.
I'm standin' at the crossroad, babe, I believe I'm sinking down. – Cream
Earnings are simply not that exciting.
The growth in earnings was SUPPOSED to come from the Finanicals and the Energy Sector and we've gotten so-so reports from the Financial Majors and oil just collapsed to $50.50 yesterday (a profit of $2,500 per contract for those of you whow followed our morning call to short at $53!) and that can't be great for Q2 profits if we stay down here, can it?
We've been telling you for years what a complete and utter scam the oil market is and knowing it's a scam is the secret to our success. Today is the last trading day for the May contracts and they still have 25M barrels of fake, Fake, FAKE!!! open orders to get rid of – down 100,000, 1,000-barrel contracts (80%) since Tuesday's post and, lo and behold – June is up 55,000 contracts (that are also FAKE) while the other 45,000 fake orders have been distributed across longer months – in order to fake that demand down the road as well.
Since we KNOW the trading is FAKE!!!, we KNEW they had to get rid of over 100,000 May orders in 2 days and we knew that would put pressure on oil and that made a good short – it's not very complicated and we do it ALL THE TIME because, although it's a total scam – it's a very predictable one…
After today, however, we will be flippping long on oil and, in yesterday's Live Trading Webinar, we identified a great long position on the Oil ETF (USO), using July call options.