BizAnalyst Network: WD: Urgent Daily Energy Alert - 07.27.05

Wednesday, July 27, 2005

WD: Urgent Daily Energy Alert - 07.27.05

Wealth Daily

If you cannot properly receive HTML e-mails, go here: http://www.wealthdaily.net/newsletters/july05/072705_dea.html to view Today's Wealth Daily.


Wednesday, July 27th, 2005 Baltimore, MD Jackson, WY Missoula, MT
Urgent Daily Energy Alert
Today's Action To Take: (New Position) Tell Your Broker To: Buy Dec Crude Oil 50 Puts (CLZ05 5000P) at 75 ($750 dollar value) Current Positions (All orders are Good Till Canceled (GTC) unless otherwise indicated.) Buy Dec Crude Oil 50 Puts (CLZ05 5000P) at 75 ($750 dollar value) Heating Oil: Long Oct 125 Puts (HOV05 12500P) at 105 ($441 dollar value) Crude Oil: Long Sep 45 Puts (CLU05 4500P) at 49 ($490 dollar value) Smart Money Selling Crude Oil (CL) Recent Bounce Seen As Corrective $61.00/barrel To Cap Short Term Rally Crude Oil (CL) prices have been firmer over the last few days as the market works off oversold conditions. Prices briefly cracked the $57 low from Jun 30, before running back to the thick of the 7 week range. We look for the market to extend the rally, with corrective sights on the $60/61 band. However, Smart Money has been selling during the recent rally. (See Smart Money Watch) This should produce a drop in prices over the next few weeks. Look for selling opportunities on the rally, with sights on the $50/51 band. We look for a test of this zone over the next few weeks. Investors are advised to pay $750 for the Dec 50 Puts, with a target return of 200% (above). Smart Money Watch Exciting position action in Crude Oil (CL) over the last few days and we look for the Smart Money shift to produce a more aggressive selling effort in the coming weeks. Look at the Power bars on the right. The gold bars represent the positions of Funds. Notice that the gold bars are rising to the left. This tells you that Funds are selling. Currently, that selling is rated at 84. This rating is our Crude Oil Funds' Power Position Ratio, or PPR, which ranks position shifts on a scale of 0 to 100. So, we classify the recent selling by Funds as "heavy". Now look at the price chart on the left. The history of daily PPRs for Funds is represented by the gold line below the chart. Since the PPR for Funds is currently -84, the gold line is well below the red dash that separates the buying from the selling. Now let's look at the price action over the last few days. Notice that prices have been moving higher in recent dealings. During this same time Funds (gold line), however, are selling. Indeed, Funds have intensified their selling effort during the rally. Something's gotta give! You can see by the price chart on the left that Funds (gold line) have been selling since the middle of the month. If the market was going to remain in the directionless mode that has plagued action over the last 5 weeks, we would see a reduction in Funds selling, not an increase. As a result, the stage is set for a more protracted retreat in prices and the lows from May appear to be the likely target. Sincerely, Michael Schaefer Wealth Daily Profit Letter To unsubscribe from the Wealth Daily Profit letter, click here. www.wealthdaily.net Wealth Daily Profit Letter, Copyright (C) 2005, Angel Publishing, LLC. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or solicitation of an offer to buy or sell securities mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy nor the statements made herein. Neither the publisher nor the Editor are registered investments advisors. Subscribers should not view this publication as offering personalized legal or investment advice. Unauthorized reproduction of this newsletter, or its contents, by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It's not our intention to send email to anyone who doesn't want it. If you would like to remove yourself from this mailing list, please see the instructions at the bottom of this message. NOTE TO OUR READERS: Angel Publishing, LLC and Wealth Daily Profit Letter do not act as an investment advisor or advocate the purchase or sale of any security or investment. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question.

0 Comments: