Tuesday, July 08, 2008
DTO WAS THE BEST PLAY FOR OIL DROP
We were looking at many ways to short the oil market and after months of saying 100 no 120 we finally took a stand and bought the DTO newly formed 2x ETF that has been up near 15% the past 5 sessions. When going with the DTO versus many easier more used route we got the unpredictable...and it paid off.
Sometimes the market "tells" include seasonality and with oil this time around it has done it's best to confound all. From a equity point of view you all saw that the XOM and OXY COP XLE were not keeping pace with OIL so this divergance led to the collapse and the big run in DTO.
So now for that Summer Rally that never appeared...we just cannot get enough PANIC in this market. The huge Bear Market rally ( 3rd largest of all time) made us all complacent and just now I am seeing on the ISEE that IWM puts ...the hallmark of a upcoming drop ....is now peaking after most were not buying protection before the big event...get your minds out of the gutter...I am talking about protective puts before a market crash...you guys have been looking at the pictures here again !
Bottom line the A/D stinks ...oil is finally dropping with the CRB but stocks can't make much headway ...is it just another Bear or is it Mama bear as it looks to me like there continues to be a shot at a rally or else another group of TRAPPED BULLS ???
Answer at 11:00pm !!!
TomTheTrader
http://www.ttthedgefund.blogspot.com
Posted by TOMTHETRADER at 7/08/2008 12:12:00 PM
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