So, Tungstenman Sachs comes out this morning with a sell-side memo saying Brent should go to $105. All hell breaks loose.
Why would GS do such a thing? My guess is...with May crude options expiry coming up on Thursday, GS needed to break free of a significant short position in calls. I guess we now know why crude was down so heavy yesterday, too. GS undoubtedly gave some of their "best clients" a little advance notice of their intentions. In the end, all this does is create a buying opportunity. Ask yourself, are peace and stability suddenly breaking out all over The Middle East and North Africa? No...not so much.
To that end and to raise cash, I sold some May $40 silver calls and bought some June $110 crude calls about 15 minutes ago. I missed the dip to my 1445 price in gold, however. I am hoping with crossed fingers that I'll get another shot. I'm in with a limit order, trying to buy some June 1450s.
Anyway, here's your WTI chart:
Keep the faith. Buy the next dip. TF
p.s. To show you how concerned I am about all of this, I'm headed out for a a massage. (Please no "happy ending" jokes.) See you in a couple of hours.