Is Now the Time to Sell Oil? (GS, OIH)

My wife and I just had a baby boy on May 8, so
I’ll be taking a short break from the Resource Prospector. I’ve asked
Andy Crowder, a seasoned technical analyst and options trader to fill in
while I’m away. He has a very unique view on the commodity markets and
I’ll think you’ll find his viewpoint interesting and

Is Now the Time to Sell

Most investors have a commonly held belief that
oil speculators are to blame for high oil prices.

Certainly there is some anecdotal evidence to
suggest that speculators can move the markets. After a 20 percent run-up
in crude oil since December, long-term commodity bull Goldman
Sachs (NYSE: GS)
recently warned clients to take some profits
off the table. The large investment bank estimates suggest speculators
are inflating the price of crude as much as $27 a barrel.

Goldman is certainly right about one thing,
speculators have pushed the price of oil to levels not seen since
September 2008.

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