Oil prices roared back from six-year lows on Friday, rocketing more than 8 percent as a record weekly decline in U.S. oil drilling. The rig count drop was a lot more than people expected and it really got the market going.
I'm not convinced that the sell-off in oil is over. The rout began in June when Brent peaked at over $115 a barrel and accelerated in November after OPEC refused to cut its production. This doesn't change the fundamental outlook in oil. We are still about 2 million barrels oversupplied.
My technical analyst didn't show any form of support yet and I believe this spike up is temporary. However, while all this news is on going, as the price drops further, I'm planning to increase my positions a little each time just by selling Naked Puts for NOV and getting ready to take the stock if assigned. While the market is going crazy, I'm getting dividends every quarterly =)
I hope you had a great January 2015! Cheers as always..
I'm not convinced that the sell-off in oil is over. The rout began in June when Brent peaked at over $115 a barrel and accelerated in November after OPEC refused to cut its production. This doesn't change the fundamental outlook in oil. We are still about 2 million barrels oversupplied.
My technical analyst didn't show any form of support yet and I believe this spike up is temporary. However, while all this news is on going, as the price drops further, I'm planning to increase my positions a little each time just by selling Naked Puts for NOV and getting ready to take the stock if assigned. While the market is going crazy, I'm getting dividends every quarterly =)
I hope you had a great January 2015! Cheers as always..
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