Monday, December 18, 2006
A quieted gasoline market
Ahh $2 a gallon sure does look nice to US consumers and lowered prices go over just the same in the international markets. But now is the time we need to start investing for the summer.
The last person never makes money, ever. In order to succeed in the financial markets, an investor needs to be the first in an investment and also the first one out. Returns to the first investors come from the later investors who drive up the price of the investment vehicle from increased volume and higher bid prices.
Gasoline prices made a modest gain in the retail market in the last week. Wholesale prices are looking about the same for the last few months. Its time to start looking toward summer. Wholesale gas prices will not fall below $1.50 before summer, when the driving season starts and more gas is needed.
Take your stakes now or miss out on a great opportunity. There is no reason for gasoline to fall below $1.50 for the duration of our existence on the planet. No new refineries will hit the lines until it is too late and oil is being drained faster than it can be produced.
Enter your trades before January 1. For some, this may provide some tax breaks as well. Positions have only one way to go, and that is up.