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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dclapp who wrote (17862)	6/18/1999 10:35:00 PM
From: pater tenebrarum	Respond to of 99985

dclapp, my method is in some ways similar - i also have index shorts hedged by calls. btw, i never said oil cannot move higher, it certainly can. i am very bullish on oil long term and i see no reason why it shouldn't move higher in the short term as well. many argue that OPEC's discipline will crumble; i disagree, since they can now see that discipline works in their favor. a japanese recovery, and generally a recovery in asia, lends impetus to the demand side of the equation. short term the crude oil contract seems to have run into some resistance above $18/bbl. but if you look at a weekly chart it is evident that so far we have only seen the first wave up and a second, corrective wave. note also the recent correlation of crude and the nikkei; it is not a coincidence i believe. regards, hb