Nice bounce on volume for crude at the 20 day moving average. I would not be short quite yet, unless scalping. I still expect a breakout to 145/150 in the coming days/weeks if oil bulls get back above 135.35. They lose below today's lows.
Responding to some e-mails, I am trading crude using gold. The math is simple:
QM (nymex crude e-mini), $5250 margin per contract, $500 a point. Today's move off lows 2.5 points or $1250 on one contract. YG (ecbot gold e-min), margin per contract $900, $33.20 per point per contract. Using 5 YG contract, same dollar margin as one QM, move off lows for gold 15 points or $2500 (overnight margin initial is $1250 for YG but day is $900).
Please don't tell Lieberman.
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on Wednesday, June 25, 2008 at 6/25/2008 07:07:00 PM.
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