SI
SI
discoversearch

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 : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Erwin who wrote (9223)1/23/1998 8:25:00 AM
From: edward miller  Read Replies (1) of 95453
 
From a contrarian point of view

RE: If you run out to the NYME and check the prices on March and
April contracts you will notice that they are less a bbl than February
contracts. This, to me, is a fundamental indication that there are
some bad times for any oil related equity in the near future and this
inverse price relationship didn't exist just a few days ago.

Several years ago, after the price of gold had dropped for years,
I noticed that gold contracts going out in time were at lower prices
than the near prices. Just like you have noted today with oil, I had
never seen that before. I don't have the exact figures at my fingers
but gold was near $300. What happened next? Gold rallied to over
$400 and has taken years to come back to $300.

The point is that perhaps the traders are as bearish now as they
will ever get. If true, this means a bottom is near.

I'm not trying to say you are wrong because (1) oil can drop from
here before finding a base, (2) the inverse price relationship can
hold for a while before something causes a change, or (3) with these
markets almost anything can happen, short term. My point is only
that there are other valid interpretations. For the record, I am
biased, with holdings in MDCO.

Ed Miller
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News