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Wednesday, October 22, 2008

entrry for 10/22/08 - BP trading morning update

It seems that my over night position considerably increased. My logic was right in my two shorts, or at least it was echoed on the morning wireds as i read some headlines, "Crude Oil Falls as Waning Demand Outweighs Prospect of OPEC Cut," the article written this morning says that an OPEC may have already been "priced" in. This is exactly part of my reasoning for shorting brent and oilgas. I almost for got to mention, I only shorted oil gas as the charts showed a pretty tight correlation on the recent charts. If I do not know much about brent and energy trading, I know far less in terms of oil/gas other than that it is related to oilgas, and that it maybe tied closer to seasonality patterns. However, such news would make me want to watch my position closer as more people on the fence are now hopping to the bear camp. I get the feeling whipsaw maybe due soon, and that it may take a significant portion of my profits as i cannot hedge against adverse movements and I have no options for stops or limits, and I must be at school all day today. Let us prey to the oil gods that nothing to drastic happens today... (then again... these are commodities I'm talking about).

Hopefully tonight I will be able to reiterate today's happenings in a more organized manor.

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