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John is 30 years old and resides in SW Folrida. He is currently working towards his Bachelors Degree in Economics and plans to become an investment adviser. His desire to help others combined with his passion for researching and investing in the global markets led him to create Street Justice.

Wednesday, July 2, 2008

Street Justice: Oil commin down?

Well, the Saudis have decided to increase oil production levels to the highest yet. This, combined with China bumbing gas prices and Bush's rally cries to drill off the coast, are in my opinion going to drive down oil and energy prices. Although I have not made any moves in anticipation of this in my real porfolios. I did sell off about 2/3 of my positions in HK, ESLR, DO and other energy stocks in my practice portfolios. I think they will be offered at lower prices at the end of the week. These moves by the governments of the world are meant to drive speculators out of oil trading. I think it will work for the short term but I don't think we'll see oil below $120 anytime soon. With the drop in oil I also think stocks that have been beat up for no good reason will have a chance to recover. Watch for a Tech or Shipping or even an Airline rally, but not Banks yet. I bought more AAPL for my wallstreetsurvivor.com portfolio also SPAR(spartan motors). My Forex position for next week is that of a strong Dollar. I am short the EUR/USD and GPB/USD and long the USD/JPY with hopes lower oil will drive the dollar up ahead of Fed meeting. Some may say I"m looking too much into this Saudi oil thing, but I feel the short term impacts will be pretty big with alot of action(volume). I'll hollar back tonight, since it should be a busy day Today..........Good luck trading!!!!!

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