Trailing Stop on Oil

After The Kelly Letter’s oil investment rose another 8% yesterday as Israel pressed its offensive in Gaza, and Russia further tightened gas supplies to Ukraine, I set a trailing stop this morning.

The position is up 69% since its Christmas Eve close, yet economic data continue pouring in negative, reinforcing my view explained to subscribers on Sunday that slackening demand will probably send oil prices down again before they embark on a sustained move higher for the medium and long terms.

Here in Japan, there’s near-panic on the news that Toyota will be shutting down all 12 of its Japan plants for 11 days over February and March. The last time it shuttered all of its Japan plants was in August 1993, when the rising yen forced the company’s hand, but that was for only a single day. Last month, Toyota’s U.S. sales fell 37%, even more than Ford’s 32% drop and GM’s 31%.

Amid that kind of demand disappearance, a 69% price gain in six trading sessions has gift written all over it.

This entry was posted in Uncategorized. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • The Kelly Letter
    A Complete Investment Management System
    The Kelly Letter  every Sunday morning by email.
    Like no other. Many subscribers say this is the best read of their week, astonishing in its ability to distill seven days of noise into one succinct overview of the very few items that might matter. Start your Sundays right!
    A one-page Quick Start Guide
    with page number references to full information in The 3% Signal. You'll receive access to this right away so you can begin transforming your portfolio into a performance machine immediately.
    The 3Sig Calculator.
    A thing of beauty! You'll use it to generate your own personal signals every quarter including exact share amounts to buy and sell based on your account balances. It emails you the results to make later quarters easy by keeping last quarter's numbers at your fingertips. Some subscribers say this tool alone justifies their subscription price.
    The subscriber-only section of this website
    where likeminded investors are commenting on notes and discussing in forums. Jason joins these interactions every day. They're a treasure trove of investing tips and wisdom.
    The archive of Kelly Letter notes.
    It’s a research center, searchable and smartly tagged to make gathering time-stamped material on covered subjects easy.
    The subscriber podcast.
    Jason reads every letter word-for-word. This feature was requested by subscribers who prefer audio learning. They listen on their Monday morning commute, during a workout, or while reading along at their computer.

    Save 17%

    Pay as you go
    Or sign up to receive free email and learn more about the system.
Bestselling Financial Author