Monday, April 19, 2010
Why Oil Is Heading Lower
Itz Chartz has been suggesting energy traders/investors hedge their positions using the ProShares Ultrashort Crude Oil ETF (SCO) or hedging the drillers such as Transocean or Pride Int'l using the ETF (DUG). Below are several charts using the Continuous Contracts Crude Oil as well as the Futures Price. Today the Gold:Oil Ratio (GOR) hit 14 via Futures pricing. Again this is a hedge, Itz believes that crude oil will trend lower nearterm, however longterm should trend higher as global demand rises.