Oil Behaves Strange

Last trade patterns in oil are quite different from what we saw in August. And several hedge funds folding up because they we leveraged long in commodities are telling similar story. It's telling me that we might have some sharp movement soon. I don't know which way, maybe I'll think about a straddle on USO. I still think that oil going down medium term, but short term movement might be up as well.

As for stocks, the picture is awful. There is no trade, no investment in sight, with exception of defense. Retail, as Jim Cramer suggests? In recession at least a quarter of them are going through bankruptcy or (with 2005 change in bankruptcy law) close to that. Tech? Google just broke down from triangular formation. I understand that technical analysis is not always right and might be completely wrong, but on clear charts it's more often right than wrong. Short term Google is going down or staying down. Apple might go up on tomorrow announcements, or go down regardless.

Euro is going down too fast to my taste. There should be correction, but it goes down every day.
So everything is wrong. The only targets on my screen are still Raytheon (under 58), DRR and UUP.

Full disclosure: at the time of publication author had a long positions in AAPL, GOOG and UUP and no positions in other stocks mentioned. Positions can change any time.

Disclaimer: This article is not intended as an investment advice. Every person should make her/his own investment decisions based on all available information and advice from her/his own financial advisor.