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Re: Toofuzzy post# 38673

Friday, 11/28/2014 5:25:47 PM

Friday, November 28, 2014 5:25:47 PM

Post# of 47132
Hiya Toof!
Hope you had a great turkey Day!

I have been out of the energy sector for a long time.

Started a new Aim account witj ERX @ $61.94

This is a triple ETF so I see no reason to use LD Aim with this. I am using standard Aim settings.


It's a 3X leveraged fund?
Yikes!

My oil holding (AXAS) dropped like a stone today along with every other energy issue (and maybe a few countires from what I've been reading).
And that triggered a Buy a full 22% below the Sell I had just last month.

From what I heard on the radio while on the road today, today's close on oil is likely not the last we'll see of the downdraft.
It could reach under $60/barrel and maybe get to $55. We might even see gas prices drop to below $2.00!

Apparently the Saudis are trying to run the small, highly leveraged players here in the US out of business by not reducing production, ostensibly holding on to market share.
They (and the rest of OPEC) did that in 1986, but the oil business here in Texas is in better shaper financially than they were back then. Albeit there are some newer players here that could get stung. But they represent a very small piece of the pie. Most of the developed fields can be profitable at $50.

So it may backfire on them. As a result it may get more unstable politically over there (greater Mid-East) than it already is.

And other countires like Russia, Nigeria and our friends in Venezuela might be the first to feel the heat.
And personally I wonder if the Saudis aren't pushing Iran a little as well.
There could be an arm's race over there before too long if Iran develops their nuke capability much further.

In that situation, you're dealing with a thousand+ year old schism between Sunni and Shia and as we witness every day, there's no love lost between those folks.

Bottom line is that a buy at these levels could be very lucrative in a short time. If the price does drop further, then maybe add a little more. But I'm not ready to 'Triple-Down' on that.

See this article:
http://finance.yahoo.com/news/opec-refusal-pressure-oil-weakest-192118167.html

Best Regards, Steve (The Grabber)

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