Admittedly, not all of these pundits were pushing their own books into year end. “Fast Money’s” beloved commodities “guru”, Dennis Gartman, wrote this morning that they recently “forced ourselves to discontinue trading” – generally people don’t do that if they are making money. Gartman had no book to push.
Gartman’s daily note is one of the better one’s in the market place, but this morning’s marked a peak in pessimism for the crude bears. For those who were “long of” oil this morning, Gartman warned “they must first overcome this almost impossibly huge carrying cost… they may, but it is and Everest to climb…”
Indeed, oil has climbed Everest’s wall of worry today… indeed.
See the “re-flation” chart below. By my math, this was a +14% intraday move!
Volume in the USO is huge today – this is an ole fashioned short squeeze. Since I am “long of it” in our virtual Portfolio, I’ll sell high here, and revisit on a down day in the New Year. I don’t think I am going to get double digit oil “re-flation” again on Friday!
Happy New Year to you and your loved ones,