I’m no T. Boone Pickens or anything, but I am giving oil a price target of $50-$60/bbl within 2 years.
DUG is your friend for those wanting an easy way to short crude.
Hard to predict price, but the price you have suggested would probably require a massive depression. If you are not predicting a depression, where is the new oil going to come from?
I’m in DUG. For those interested, DUG is not a direct short on oil per se. It is an ETF that tracks 2X the inverse of the Dow Jones US Oil and Gas Index. Includes Exon, Chevron, as well as some DJUSEN swaps.
$50-$60 for oil feels too aggressive for me. I’m looking for a correction that will bring it back inline with the trend up, but am not willing to bet on a fundamental shift in the trend. The recent rise has been too steep (parabolic, quantum, exponential, whatever) and is mere speculative bubble garbage. It is the greater fool principle, in action.
I’m hoping for it to gap higher in the morning, as I’ve only accumulated about half of what I’d like to be holding. It could rise all this week (especially since too many people are looking for the crash at this point).
I can be patient.