Oil

I think oil can continue lower for the next couple of days. Looking at XLE and OIH as shorts too.

Be Ready and Be Careful

What has been strong is very weak and what has been weak is strong. Commodities, soft and hard ,are getting spanked and the red headed step children are getting gobbled up. In my opinion, a very interesting dynamic is setting up. If Bernanke comes out less than hawkish on inflation, everything that we have seen happen this morning could quickly go the other way, and in a hurry. It may just happen anyway. I've been short some XLE and OIH. If things change I will get very long those two. If the market buys into Bernankes plan to curb inflation, I will stay where I am.

P.S. DTO that I posted a few days ago is having a good day.

So You Want To Be The First?

DTO- well, one of the first. This is the new double short crude etn. I still don't have all the details, but I think it may be the double short version of USO. So, if I'm correct it's a pure play on the short side for crude. I much prefer this to DUG. If anyone has more info, comments are welcome

Here We Go Again

Oil is back up ,and the financials are getting pounded again. Israel has been running some pretty aggressive "drills" this past week and it has started speculation again that they may attack Iran. Citigroup came out with a miserable outlook on financials yesterday and today Merrill is cutting estimates on the regionals and is expecting more bad news. MBI and AMBAC lost their triple A rating-what a surprise. Sometimes there is an opportunity when the analyst community all downgrade at the same time. We all know how value added analysts are. I am still not a believer although I do own a little WB with some way out calls.

Today could be rough with oil up and financials under more duress and frankly I will trade small. I will be watching some opportunities in the oil patch and maybe some quick shorts in the financials.

NEW ETF-- Proshares has a new double short oil etf, the symbol is DTO. I am trying to gather some info when I get chance. It has only been trading a few days. I would like to see if trades more in line with oil than DUG does. If it is just a play on crude than this is the one I will play going forward.