Dollar Getting Crushed Causing Oil To Spike. Do Not Touch WLT Here
June 26, 2008 9:08 AM
Do not short WLT here. The chart says it should go lower before higher, but the dollar is getting crushed and causing the spike in oil this morning. I am concerned about this and it is difficult to say where we are going here on energy and commodity stocks because of the dollar. As i have mentioned, news can and will change the dynamics of supply and demand and if the dollar collapses i am not exactly sure what will happen, but oil will likely skyrocket.
The easy money on WLT has already been made. I personally would NOT hold a short position on an energy stock overnight anyhow. The dollar and oil is simply too volatile. They are trades and exit, IMO.
10:53 Update: It spiked down and reversed as I thought was possible. Like I said before the market opened do NOT short WLT here - LEAVE IT ALONE unless you are a VERY good trader, IMO. I would personally have covered any short on any weakness here because of oil and I am not certain where it will close today. It could go either way, IMO. .
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Ok, WLT made a new low. It would now be justified to skyrocket…maybe. Be VERY careful here on WLT. I was looking for a new low today and reverse and it did exactly that….if oil clears the high, it may skyrocket. leave this thing alone here unless you are VERY good, IMO
The close is all that matters on WLT today. Unless you KNOW what you are doing and have pro type skills, I would not touch WLT today. But that is how i see it.