Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jacob Snyder who wrote (143862)	1/18/2011 5:13:36 PM
From: profile_14	Read Replies (3) of 206330

I would argue that the breaking point is already here because all other commodities have ramped as a result of the weak dollar. Furthermore, with high unemployment, we can't take as much. Remember 2008 when oil spiked? We were in much better shape back then. The market was strong, the world had not come to an end, and employment was much higher. Real estate was coming apart, but no one foresaw what was coming. When oil was at $50 bucks the word was we could handle $70. At $70 we could handle $90. Well we just can't handle ever increasing prices at the pump without those dollars coming out of the economy elsewhere. The refiners were getting crushed as the economy slowed down and oil spiked. Consumption dropped and margins got decimated. No one was spared. I tend to agree with the premise but think the level is lower. In fact, I think we are there now. Hence, I am selling longs and hedging with long puts and shorts against remaining longs, in a paired fashion.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next