Yesterday before, going to bed, I called my dear girlfriend, and comment to her, how the “downtrend” of crude oil prices was about to change, for the simple reason that the dollar has turn around and it’s getting weaker again. This because Mr. Bernanke (Director of the FED), will eventually be printing money like never before, to save all the banks in trouble and bring liquidity to the market. I analyzed some charts, to anticipate the behavior of the Crude Oil.
After I analyzed different charts, and interpret the latest news about the “finance bail out” I was completely convince of buying oil early in the morning at the price of 103 dollars. I woke up at 5 AM to see if it was any estranges movements, everything was normal, and then I decided to buy two contracts of oil (2000 barrels), at the end, I couldn’t because it was too much stuff to do at work, and when I invest I like to be focus on the market. By the end of the day the oil jumped 27 dollars…………I just missed to make between 20 to 40,000 dollars!!!!!!!!!!!!!!!!!!!!! . It really hurt just like if I would lose all my money.
I bring this up, because I did said months ago, that oil will collapse. So you probably will ask why the Oil had the biggest gain in history on today’s trading and go from 102 dollars to 125 dollars per barrel. It’s simple, we are facing an unparalleled it event, the FED and the government are committing to print as much money need it to save the finance market thanks to the mistake of couple greedy CEOs.
If you ask me how to protect your money buy GLD (ETF of gold). It’s an inflation hedge. Sometimes I wonder what I still doing working fulltime in Technology, instead of being a full time trader. Just god knows!.