Right now, I am very pleased with the Dow Short position I am sitting on. Ditto on the buy for Gold. Tuesday afternoon, Gold dipped down to 1445. I had buys at 1450 and 1475. Right now gold is on its high at 1468. I am taking some profits, and moving my sell stops up to insure a guaranteed winner.
For the time being, I think crude oil, while a choppy whippy trade. I had a resting buy order in may crude at 105.25, but it never traded there. I could see us trading in a 10 dollar range here between 105 and 115, but that’s just my opinion.
With gas around me at 4.05, the next level of pain will be 4.50 a gallon and then 5.00 a gallon. I can’t see any reason why we don’t get there this summer. I read an article this morning about the rise in Chinese demand for air travel. More planes, more cars, 1.3 billion people want the middle class lifestyle. In the end, we could all be riding bicycles here in the US and gas will still be 5.00 a gallon.
Demand from China and India will keep prices firm.
Again, this is just my opinion.
Good Trading.
CER
