Whats the Best Trades and Short sells for Monday 7-14-08

Asked by kobla in Latest News 4 months ago

Answers

206 points

DirtyD answered 4 months ago …

This man is gonna be long Freddie Mac and Fannie mae...definitely going to see a nice pop for the day. Might be looking at some options trades as well. Not a recommendation or anything, just what I'm going to be doing personally.

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123 points

BILLYJ65 answered 4 months ago …

Go short on oil. All the bad news has already been factored in to the current price. The only 2 bad things that might drive prices up significantly from here would be a major natural disaster or an actual attack on Iran. I'm betting against both of these things happening. Supplies are outpacing demand. There is real demand destruction happening for months now. When it starts to drop, and it will, it will be a free fall with the long holders dumping.

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123 points

BILLYJ65 answered 4 months ago …

I don't like to pat myself on the back but "what a call" I made yesterday! Today crude fell $6 a barrel and the ultrashort ETF that I was referring to above (DUG) rose 9%. My position in DUG went up $8000 today. I expect some volatility in the short term but still expect a large drop in crude prices by the end of the year. Back in Jan when crude was about $100/barrel DUG was trading at almost $50.00 even after todays increase it is still only back to just over $32.00.

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