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Defense Secretary Chuck Hagel suggested Friday that the Pentagon was moving naval forces closer to Syria in preparation for a possible decision by President Obama to order military strikes. Read more:
Expect crude to possibly break above 108/109 resistance on fears that U.S.
intervention in Syria will stoke further conflict in the oil-rich Middle East. While Syria isn't a major oil producer, investors fear that the two-year-old
civil war could spill over to affect oil supplies in nearby countries.
Also what will be the response from Russia and Iran, they may step up their
involvement. Russia recently rejected the U.S. government's evidence of chemical weapons
used in the Syrian civil war, calling it "unconvincing."
ITZ is long Proshares Ultra Short Crude (SCO) having entered on 6/29 $35.80; 7/2 $34 & 7/3 $33 as a hedge. The Commitment of Traders chart as highlighted over last several weeks showed a decrease in net short position by commercials recently. see charts
For now ITZ will remain in the position, but a break over $109 on any escalation in Syria by U.S. military & ITZ will exit SCO.
Gold rose 1.9 percent on Friday, hitting its highest price in more than two
months near $1,400 an ounce, as a big drop in U.S. new home sales renewed hopes
that the Federal Reserve will maintain its bond-buying
economic stimulus and geopolitical tensions also added to the move.
Silver outperformed gold
to rally nearly 4 percent to a 3 1/2-month high as the dollar fell and U.S.
Treasury bond yields dropped. It also rose above
the $24 mark for the first time since May 9.
Silver Wheaton (SLW) has rallied nicely and ITZ sees further upside.