Wednesday, July 5, 2017

Sell the Crude Oil rally

Should you buy or sell crude oil. Here is what Dennis Gartman thinks....

"CRUDE OIL PRICES CONTINUE TO ADVANCE and have now risen for 8 or 9 days in a row, depending upon when one has marked the close. 

We have maintained that the “bounce” would take crude back to The Box marking the 50-62% retracement in nearby WTI crude to somewhere between $47.00-$48.15 and for all intents that was satisfied yesterday when the high of $47.07. 

The time then has come to be short of crude oil once again, and we are certain that we shall be at least as equally scoffed at for selling crude today as we were two weeks ago for urging everyone, everywhere not to be short. This recent increase has, of course, re-ignited the interest of drillers to drill and the contango is still wide enough to encourage drilling and hedging as the one year forward is very nearly $50/barrel."

via zerohedge