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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (20459)	7/25/2016 8:13:46 PM
From: Goose94	Read Replies (1) \| Respond to of 202399

Crude Oil Continues Slide September gave up another 2.6% today. Since topping out on June 9th at 52.73, September crude is now struggling to hold above the 43.00 level. Oversupply has been the driving force for the recent selloff, but there have been plenty of similar news stories during the run up from the January lows up until we topped out early last month. That said, it appears refiners are already shifting towards winter blends, which goes to show that they’re just not seeing the typical driving season demand. With great supply and relatively weak demand, I would not be surprised to see crude in the $30 handle in the near future. I also believe that crude in the $30 handle will offer pretty good value, so I’m not sure just how close we’ll get to the January low of 32.85 on the September contract. Many have the contract as oversold as is, but I still like the idea of holding off on getting long for lower prices. Many are attempting to capitalize on the downtrend, but also get long at lower prices by incorporating 1 x 2 and 1 x 3 ratio put spreads. Feel free to get in touch for further details about the risk/reward potentials. Bill Dixon