What Happened At The Oil Meeting? It FAILED Miserably!

What Happened At The Oil Meeting? What happened at the oil meeting today?  The meeting failed miserably over the freezing of oil.  Iran not only didn’t show up, they have insisted on increasing their oil production to 4 million barrels a day.  This meeting turned into a masterful example of why you should consider shorting.  There are quite a few companies out there that will be rocked by this development and could possibly see double digit losses in share price on Monday.  BBEPP and other energy companies should be facing a bad day and that will mean some big profits for the short investors. Oil is already down 5% in overseas markets.  Can you say ouch?  The fact is, prices will rise in the next few years, but with actions like we witnessed today, it will take a few years, and not a few months like the energy bulls wanted.  Oil is staying around $45 to $55 a barrel max for the next year after today’s results.

For those that  are looking to make some money off of this situation, you need to pick the right stocks to short or find a buying point for a long position after the blood has started to flow.  It reminds me of 2008, when the market crashed and stocks were trading at rock bottom levels.  It is hard to pick a place to start buying, but you are going to have to if you feel like a rebound will happen in the near future.  Back then, it was like trying to catch a falling knife.  You were going to get cut, but the how bad was unknown at the time.  This oil crisis is much the same.  Companies are going to go bankrupt and some will squeak by and survive and then go on to thrive.  Just be careful in selecting the right ones.  Sometimes it is easier to short the dogs then it is to find the next diamond in the rough.

With that being said, this post is a short update on the oil industry, just because I found it very interesting AND YES…I am short the oil industry.  We will see how this goes tomorrow and how PTCT plays out with that short position.  All in all, I am feeling pretty good about the profit potential going into tomorrow’s trading session.  I am guessing that the market will be down about 1% and the energy stocks will be taking a huge hit in terms of double digits for those on the brink of bankruptcy.  Some investors I talked to are predicting loses of 3% on oil prices, I am going out on a limb and saying a loss of 6-8% is more likely after the longs run for the door and the shorts double up.  This may create a huge opportunity for a long later this week, but it sure won’t be tomorrow.  As always, good luck and happy trading and may the profits find their way to your investment account.

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