Nov 30, 2010

What A Diference A Month Makes In The US Dollar, Natural Gas Outlook & Stock Picks

"Back in October the economic buzzwords had become “money printing” and “debt monetization”. Of course, at the time, the Fed was initiating their policy of QE2 and you’d have been hard pressed to find someone in this country (and around the world for that matter) who wasn’t entirely convinced that the USA was about to send the dollar into some sort of death spiral. QE2 was about to set off a round of inflation that would make Zimbabwe look like a cakewalk. And then something odd happened – the dollar rallied as QE2 set sail and hasn’t looked back since."

in The Prag Cap

The dollar rally has been quite impressive lately. I am a bit surprised that stocks have not corrected further then they did, at least for the time being. Of course, if the dollar keeps rallying all risk assets (stocks and commodities) will find an air pocket sooner or later.

On my trading, I am mostly daytrading and short term swing trading for raids that last from half a day to 3 or 4 trading sessions. I have been using the Aggregate Profile on the S&P 500 and some other proprietary indicators to trade my own account.

I am risking a lot less then I did 1 or 2 years ago, but my Sharpe Ratio has skyrocketed and my equity curve looks much more like a straight line then a wild rollercoaster (I used to have 30-40 percent drawdowns a few times in a year, as I always going for the home run or the doubling of the account on a couple of trades). This more conservative style is working for me now and I have to say that since Enzo was born, I feel the need to play safer and not bet the ranch on single trades.

A trader is like a virus in many ways, as it is always mutating and adapting to his and also to market circumstances. If you have been trading for a few years, you know what I mean.

On other topic, I have been following Natural Gas Futures with particular interest. After a strong run, the "Little Demon" (as me and Brian - my programmer - have nicknamed it) has found resistance and completely reversed course. Check the chart below:

I think this is the type of action that confuses everybody. After a big run up from 3850 to 4500, the Little Demon has corrected all the way down to 4200, with a big one day sell-off. As I have said before, if you like quick action, this is the futures contract for you. We have "Fast and Furious" action every week on NG Futures and United States Natural Gas Fund, LP (NYSE:UNG).

My view is that the cream is off the market now, and a retest of the lows may be in the cards, but things change fast in the Natural Gas complex, so I will keep an eye on it.

I am also watching some stocks, and John Deere (DE) is acting like it wants to go higher. It held nicely yesterday and it trading right at the 50 day moving average. Another stock that seems to have found support is Titanium Metals (TIE). Its not in a strong technical condition, but it was a high flyer a few months back and it may be getting ready for another upmove.

Anyway, me and my subscribers played yesterday`s late rally via eMini S&P Futures (or SPDR S&P 500 ETF (NYSE:SPY)) and also via John Deere (DE) and Titanium Metals (TIE). It was a very good run for us.

I haven`t shared any music lately, so I will introduce you to Beach House. One of my favorites Alternative Rock bands:

Related: United States Natural Gas Fund, LP (NYSE:UNG), Deere & Company (NYSE:DE), Titanium Metals Corporation (NYSE:TIE)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 29, 2010

Oil Is Strong Despite US Dollar Strength.

"We are maintaining a bullish view for now, with the oil complex possibly detaching further from the strong dollar while placing greater emphasis on increasing indications of favorable U.S. economic guidance."

Jim Ritterbusch, Ritterbusch and Associates

Related: United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return (NYSE:OIL), ProShares UltraShort DJ-UBS Crude Oil ETF (NYSE:SCO), Energy Select Sector SPDR (ETF) (NYSE:XLE)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Oil, Stocks, Seasonality.

I am finally back full time to my trading desk. I had a few business commitments over the last couple of weeks, so I was away from my computer(s) most of the time. Its great to be back.

Stocks will open lower today. Today`s seasonality is pretty bad so this weakness was to be expected. Nymex Oil Futures are the standout on my trading platform. Oil is trading up going against major dollar strength. As I wrote last week, war is always bullish for oil and the Koreas tension is keeping oil well bid.

I will try to get into the rhythm again here on the blog. I could not blog much for over 3 weeks.

Related: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL) , ProShares UltraShort DJ-UBS Crude Oi ETF (Public, NYSE:SCO) , ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , ProShares UltraShort QQQ (ETF) (Public, NYSE:QID)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 23, 2010

Oil Futures Are Trying To Find Support.

Oil Futures are trying to find support again, after hitting 80 dollars a barrel last week on the December contract, and trading as low as 80.90 USD on the January contract early this morning.

I am very bullish on oil long term, but as Keynes once said, in the long run we are all dead... So we must play for position, find low risk entry levels, and try to play it wisely grabbing a couple of dollars per contracts here and there.

As you know, I am a big Ferrarista. But this Aston Martin is quite a machine...

Related: United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return (NYSE:OIL), ProShares UltraShort DJ-UBS Crude Oi ETF (NYSE:SCO)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 21, 2010

Good Trading Quote & A Good Video

I found this excellent quote while preparing some material for a Trading Seminar:

“Trading with an edge is what separates the professionals from the amateurs. Ignore this and you will be eaten by those who don`t.”

Watch this funny video about QE:

FIY, this video has been watched 2,267,197 on Youtube...

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 18, 2010

Closed Oil. It Was A Good Run.

I closed my NYMEX Oil Futures long position for a nice profit. I am on the sidelines again. New opportunities will arise soon. They always do.

I will leave you with this note. Stock market bulls be cautious:

"Being bearish is officially out of style. Sentiment readings have reached well beyond excessively bullish levels. The most recent Investor’s Intelligence survey showed another sharp increase in bullishness at 56.2%. This 7.6% surge in bullishness is the largest one week jump since April 2010. At 56.2% this is also the highest reading since December 2007. The last time bullishness was even near these levels was April 28th, 2010 just days before the flash crash."

in The Prag Cap

Nov 17, 2010

Bullish On Oil. Going Long Nymex Oil Futures.

I am taking advantage of the recent oil sell off and I am going long NYMEX Oil Futures just above 80.00 USD.

While I was establishing my long position I was recalling this fantastic speech by Jeff Rubin:

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

S&P 500 Has Quickly Corrected To Support. Yesterday I Played The Long Side For The First Time In A Few Weeks.

After being short for a while, yesterday I tested the long side of the market for the first time in a few weeks. The S&P 500 was overdue for a correction and this correction quickly sent the index back to support. I am expecting a rebound from these levels.

As the old Wall Street adage says, the bulls climbs up the stairs while the bear comes down on the elevator. That was the case again, with the market losing its gains much faster then it rose.

We are playing the system long today with no hedges. So a rising market will certainly help us today. Here is the chart that illustrates this correction best:
With the holiday shopping season upon us,  I will leave you with one of my favorite watches, the TAG Heuer Monaco.


TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 16, 2010

Shiller: The Evidence Of A Stock Market Wealth Effect Is Weak.

“The evidence of a stock market wealth effect is weak; the common presumption that there is strong evidence for the wealth effect is not supported in our results. However, we do find strong evidence that variations in housing market wealth have important effects upon consumption.“


Robert Shiller

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 15, 2010

No Time To Blog Today. Great Sound.

I am leaving the Trading Desk and I don`t really have time to blog today. But I will leave with a magnificent sound. Meet DJ Discant Project (Alexander Antonov):


TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 14, 2010

Gary Shilling Is Bearish And Says QE Won`t Make A Difference.

“I don’t think it’s enough to make a great deal of difference. The earlier QE1 didn’t and I don’t think this will, either. The economy is weak and it doesn’t take very much of a shock to push it into negative territory. I don’t think that’s enough to justify where stocks are now.”

Gary Shilling, president of the investment research firm A. Gary Shilling & Co.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 12, 2010

Still Short S&P Futures, Took Some Profits In My Gold Shorts.

What a great way to end the week. My short lines are paying off beautifully, and I took some profits in my Gold short line. I am moving back to town later today, after being a guest speaker in a NYSE Euronext event for the last couple of days.

I am staying short for now. I am trying to enjoy the ride, as much as possible. I will Tweet a bit if I can.

I will leave you with a fantastic trading quote from Michael Marcus, "I think to be in the upper echelon of sucessful traders requires an innate skill, a gift. It`s just like being a great violinist. But to be a competent trader and make money is a skill you can learn".

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 11, 2010

Oil Is Rock Solid Above 87 Dollars. For How Long?

I am out of town today, so don`t really have time to blog. I was expecting a bigger drop then 74 points on the Dow Jones.

I am also surprised with the Gold strength. It should have dropped below 1400 today. It didn`t and has even rallied to 1408 before the closing bell. I still think that this recent volatility spike signals a reversal in Gold, but the market held nicely today, can`t argue with that.

A final word on oil. Its rock solid above 87 dollars per barrel.

I will leave you with Band Of Horses. Great sound.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 10, 2010

There Was No Follow Through Today. But There Will Be Tomorrow.

Cisco Systems (CSCO) is trading down more then 3 percent in after hours trading. That will probably be a catalyst for a down day tomorrow in stocks.

I am still bearish and short and I have added Gold to my red ship. This rising volatility in gold is very bearish and I recall Soros` wisdom, "volatility is greatest at turning points, diminishing as a new trend becomes established."

I am having a great time trading gold. I think there are a lot of individual investors playing it because it has a quite emotional price action. It will be a great short going forward.

I invite you to go through the quotes section. Its a recent section of the website with a few dozens quotes on trading, investing, money and luck. Very inspiring.

I will leave with one of my favourite tracks,

I love this part, "I know someday you'll have a beautiful life, I know you'll be a star in somebody else's sky, but why, why, why can't it be, can't it be mine". Magnificent band, one of my all time favorites. I usually share with readers some upcoming bands, but I wanted to listen to this classic today. I know you will enjoy it as well.

I will be out for most of the morning and early afternoon, so I hope the market really sells off, even if I am not watching it...

Related: SPDR Gold Trust (ETF) (NYSE:GLD), SPDR S&P 500 ETF (NYSE:SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS) and Cisco Systems, Inc. (NASDAQ:CSCO)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 9, 2010

The Time Is Now. Sell Short All That You Can.

Jesse Livermore used to say, "there is a time for all things". Well, now is the time to be bearish and short.

I have the biggest short line of the last 12 months. I don`t think the engine will backfire. The intraday volatility, the 30 dollar range in Gold, the US dollar rally, the Yen sharp moves...this all points in one direction and that is lower prices for stocks and commodities.

I am playing big now, expecting to make a killing on this one. Regular readers know, that I haven`t been this bearish for quite a while. I could expand the post with more arguments for the bear camp, but I think I have been emphatic enough. I am "all in" short.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Natural Gas Is On The Move.

I am watching Natural Gas futures with particular interest in the last couple of days. After a successful test of the 3.800 mark it has rallied quite substantially in the last few sessions. Its trading around 4.150 as I write, up 1.47% pre-market.

But there is a strong resistance at the 4.200 level, so its 100% technical trading these days on the Natural Gas futures trading desks. I have nicknamed NG futures the "Little Demon" because so many traders have been burned in this rather peripheral futures contracts. I guess its the fast and furious nature of it that attracts so many newbies to this one.

On other topic, I will introduce you to The Dining Rooms. They are based in Milan, Italy and its music does not fall under a specific genre, blending ambient, electronic, and jazz. Great sound.

Related ETFs: United States Natural Gas Fund, LP (NYSE:UNG)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 8, 2010

Milton Friedman`s Lecture. Great Video.

I was pretty active on Twitter today, but could not update the blog. I will leave with this fantastic lecture given by Milton Friedman:

(From a lecture given by Dr. Milton Friedman in Erie, Pennsylvania, 1978)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 6, 2010

A Profit Margin Squeeze Will Be The Catalyst For The Next Correction.

"I think the Chairman is overlooking the fact that corporations will be less likely to hire as they see their margins squeezed. This is a significant issue the Chairman appears to be glaring over. It should not surprise any of us that he is viewing this environment as an academic and not as a business owner. Just one more piece of evidence showing he is unqualified for this position." - in the Prag Cap

A profit margin squeeze due to higher commodity prices and the inability for corporations to pass them along to the consumers (wages are not going up) will be the catalyst for the next stock market correction. Oil is also going to suffer a multi-point drop.

Related ETFs: ProShares UltraShort S&P500 (ETF) (NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , United States Oil Fund LP (ETF) (USO), iPath S&P GSCI Crude Oil Total Return (OIL)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Bernanke Says "Our Credibility Must Be Mantained". What Credibility?

“I have rejected any notion that we are going to raise inflation to a super-normal level in order to have effects on the economy. Our credibility must be maintained, and it’s critical for us to maintain inflation at an appropriate level. We’re not in the business of trying to create inflation. Our purpose is to provide additional stimulus to help the economy recover and to avoid potentially additional disinflation which I think we all agree would be a worse outcome.”

Chairman Bernanke, today in a panel discussion at a Fed conference in Jekyll Island, Georgia

I do not know exactly what credibility is Ben referring to. He is debasing the currency as we have never witnessed before. Anyway, I am expecting a dollar rebound on the next couple of weeks, because everybody is on the same side of that trade right now and it just cannot continue. Normally, when this happens a violent counter trend rally takes places without any special catalyst for it.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Read Crush It! In A Couple Of Hours. Great Book.

I continue my immersion into social networking. Now I have added Twitter.

I have read "Crush It!: Why Now is the Time to Cash in on Your Passion" yesterday night before going to bed in a couple of hours. I read the full 142 pages without stopping even for a glass of water. Its a pretty amazing book and I connect to Gary Vaynerchuck in many aspects. I am living the life he describes in his book. I am having the time of my life, I love trading, blogging and managing my most recent creation, the Trading Subscription Service. I love what I do so much that it does not even fell like work to me. I am passionate about it, and I would work even longer hours if I could.

Have a great weekend.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 5, 2010

Bought A Few Books.

I just bought a few books, I am going to read them , evaluate them and put them on the Recommended Book`s section.

I am interested in reading The Soros Lectures At The Central European University and Gary Vaynerchuk`s Crush it!. Not pure trading books, but I cannot read any more trading books. Maybe I will write one soon. Are there any Wiley Finance or Mc Graw-Hill employees reading this site?

Have a great weekend.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

S&P Intraday Profile

This is the intraday profile chart for the S&P 500 Index when the Employment Report comes in well above expectations. After an up gap the market tends to drift lower for the rest of the trading session.

I hope that helps you today in your trading.

Have a great trading day.

Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Employment Report Coming Out In 20 Minutes.

The expectations are +60k on Non-Farm Payrolls and +75k on Private Jobs.

History suggests that if the data comes way above expectations, the market will open higher and then sell-off and if the data comes in very weak, the market will do the reverse, it will open at the low of the day and rally for the rest of the session.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 4, 2010

Coherent (COHR) Has A Great Earnings Track Record

This is one of the "Earnings 1 Day Plays" sent to subscribers today. The company will report earnings on the after hours session later today. This stock has an impressive erninngs track record:

Coherent, Inc. (NASDAQ:COHR), has an earnings beat rate of 90%, and has rallied 1.98% on average on the day after releasing its earnings;

You can check the recent "Earnings 1 Day" setups performance on the Trading Service page.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Should We Sell Short This Up Gap? Watch The King (US Dollar).

EMini S&P Futures are rising 8.5 points pre-market implying an up gap for the open. I would expect a reversal after that gap, but the US dollar is also very weak, down almost 1% and the US dollar is still The King in dictating where risky assets will go.

Crude Oil futures have traded above 86 dollars per barrel, testing a 6 month high. The difference between front month and next expiry is at around 65 ticks, so its a relatively interesting carry trade to short it at these levels.

Watch this beauty from Samuel Eto o against Tottenham. He scored in this week`s CL group matches.

Related ETFs: United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return (NYSE:OIL) , PowerShares DB US Dollar Index Bullish (NYSE:UUP), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), ProShares UltraShort DJ-UBS Crude Oi ETF (NYSE:SCO), iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 3, 2010

A Strong "V" Pattern After The Fed.

There was a little bit of everything for everybody. We had a sell off after the statement down to 1179 on the S&P Futures and then a strong rally into the close (1195). The typical price action that confuses everybody including your cat.

What to expect for the next few session? I am still expecting the classic buy the rumor, sell the news on the elections and Fed. We will just have to wait and see. And while we wait, we can always listen to this marvelous sound coming from Britain:

(its the second time I post this video, but its just too good)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

I Am Expecting A Sell Off After The Fed Statement.

It will be very interesting to watch the Fed statement and even more interesting to watch the market reaction. Can`t wait.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Trading Joke: Stockbroker

"A young stockbroker decided to take a day off and visit some of his professors in his old school. When he made his way into the entrance he noticed a dog was attacking a small child. He quickly grabbed the dog and throttled it with his two hands. The next day the local newspaper reported the story with the headline, "Valiant student saves boy from ferocious dog". The stockbroker called the editor and strongly suggested that a correction be issued and that the paper will tell the readers he was a successful Wall Street broker and not a student. The next day the newspaper issued a correction and the headline read, "Pompous stockbroker kills school mascot"."

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Its Fed Day. Will The Fed Disappoint?

Very good Fed analysis on the Calafia Beach Pundit:

"If the Fed "disappoints" the market tomorrow by announcing an unimpressive QE2 program, this would likely result in a strengthening of the dollar. That's because it would imply that the Fed wasn't quite as worried about the economy and deflation as everyone thinks, and that in turn would imply that the Fed would be less likely to keep rates at very low levels for as long as everyone currently thinks. And that, of course, would result in a rise in US 2-yr yields and a narrowing in the US-German interest rate differential, to the dollar's advantage.

I'm hopeful that tomorrow the Fed will err on the side of caution with its next round of quantitative easing. I don't see the need for QE2, and any additional easing at this point is only bad news for the dollar (much of which is already priced in). Weakening the dollar is not the way to strengthen the US economy, and printing more money is not the way to stimulate the economy. Forcing more dollars on the world only drives down the value of the dollar and reduces the demand for US investments."


in Calafia Beach Pundit

The elections did not move the markets much, so we will have to wait for the Fed for some real price action.

Have a great trading day.

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

Nov 1, 2010

What Level Of QE IS Enough To Sustain A Rally?

"The Federal Reserve will probably begin a new round of unconventional monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, according to economists surveyed by Bloomberg News."

in Bloomberg.com

What level of Quantitative Easing is enough to insure a stock market and commodities rally? Certainly the 500 billion dollars that economist surveyed by Bloomberg expect will disappoint the market. Anything under a trillion will probably trigger a classic buy the rumor, sell the news reaction.

I have added two new pages on the website related to the Trading Subscription Service. So, if you`re interested you can go through the service in greater detail.

I will leave you with a fantastic live performance from Trespassers William. Great sound.


Related ETFs: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) , SPDR S&P 500 ETF (SPY) , iShares MSCI Emerging Markets Indx (ETF) (EEM) , iShares FTSE/Xinhua China 25 Index (ETF) (FXI) , PowerShares QQQ Trust, Series 1 (ETF), SPDR Gold Trust (ETF) (GLD), iShares Silver Trust (ETF) (SLV)


TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.

The Federal Reserve Wants Higher Oil Prices

"In fact, if the increase in oil prices is gradual, the persistent rise in inflation can cause a GDP expansion."

Martin Bodenstein, Ph.D. in a Fed Paper "Oil Shocks and the Zero Bound on Nominal Interest Rates"

If there was any doubt that the Federal Reserve is insane, now he have the proof. Note, that the Fed actually wants higher oil prices...

Related ETFs: United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL), Energy Select Sector SPDR (ETF) (Public, NYSE:XLE)

TraderHMS offers a full trading subscription service. But there`s much more to life then trading. That is why this blog covers everything HMS loves outside of the markets: good music, art, cars, traveling and sports.