Hi Vito,

For me it would be the opposite. As soon as I bought USO long it
would go down for sure. ;-) And what is up with DUG? Oil went up and
so did it the last couple of days. Market was screwy last week. ECB
raised rates and the dollar went up against the euro. What is up with
that?

Fred

"Uncle_vito" <u...@y...com> wrote in message
news:SsadnewD2ZQ4TPLVnZ2dnUVZ_rLinZ2d@linkline.com..
.
> Thanks for the reply, Fredi. I likely will just sit back and watch.
> Seems when something is 'obvious' just the opposite happens.
>
> Also surest way to get the price of oil to drop is for me to short
> USO.
>
> Sometimes I am tempted to try it with just a few shares. The loss
> of $5000 or so would be almost worth the entertainment value. Also
> with the drop in oil, the rest of my portfolio would go up.
>
> Vito
>
>
> "FrediFizzx" <f...@h...com> wrote in message
> news:6d9s1nF1iqg7U1@mid.individual.net...
>> "Uncle_vito" <u...@y...com> wrote in message
>> news:pNydnRI_-fodMPLVnZ2dnUVZ_jydnZ2d@linkline.com..
.
>>>
>>>
>>> OK. Seems obvious that the stock market is inversely proportional
>>> to the cost of oil. This can be seen in the last few weeks where
>>> all oil did was go up and all the stock averages went down.
>>
>> It seems that way recently but historically it is not very well
>> correlated. Oil was going up while the market was going up from
>> 2003 to 2007.
>>
>>> Well it seems like oil is headed to $200/bbl.
>>
>> Nobody knows for sure. I personally would expect a decent pull
>> back before it goes to 200. There aren't long lines at gas
>> stations yet. But one nasty hurricane could kill that easily.
>>
>>> So that means if I short the DJI or SPX I should make money,
>>> correct.
>>
>> Unknown. I personally wouldn't be shorting the general market
>> right now. Interest rates are still relatively low and stock yields
>> are still beating 10 year treas. yields.
>>
>>> Seems like a sure thing unless the US Gov announces opening up the
>>> Str Oil Reserve or something like that which would cause a blip in
>>> the stock averages before they continue their downward spiral and
>>> oil its upward spiral.
>>
>> If we have a nasty hurricane, I suspect they will have to open the
>> SPR spigot or things will really go bonkers. It is probably a good
>> thing that they did get it almost full.
>>
>> Fred
>>
>
>
>