I posted 4 days ago about how crazy high oil will get https://www.reddit.com/r/stocks/comments/t4898g/tell_me_why_i_am_crazy_to_think_oil_will_easily/?sort=new.
I have made an approximate 30% return in OILU (own several shares still).
OILU (currently own 460 shares)
Sold all of my BP on Thursday and bought up 28 shares of Chevron.
Bought 59 shares of USO (United States Oil Fund).
I have become a little more conservative with price predictions, and I believe we will see $130 a barrel oil by the end of March instead of $150 a barrel.
I believe $150 a barrel is imminent come May though. Once June gets here it will be up to $160+. I believe the best time to sell, as always, would be when it reaches a milestone that is not crazy. So I would suggest selling all oil etfs/stocks within the next 2 months/when the price hits $130 to $140.
Let the price go crazy high, say to $180, $200, $250, etc.
Then the day you see a nice drop of 5%, followed by a consecutive day of 3-4%, buy every single share of SCO you can get your hands on (SCO = ProShares UltraShort Bloomberg Crude Oil).
The sad truth is that we are heading for a recession – so I am also come Monday selling VOO (41 shares), SPY (11 shares), and my only long term holds will remain SOXX, AAPL, MSFT, TSLA.
Last thing to post here – I am going to be buying TSLA as well as KARS etf like a madman the week oil hits above $150. I believe come July 2022 enough people in the United States will just say screw it and buy a car that never needs oil/gas again. I know I probably will be one of those people.
Let us not forget that oil is not just needed for gas/oil for vehicles, it is used in literally a large portion of things sitting around you right now (clothing, bottles, etc). So to those who think oil will ever in 2022 return to back below $90 are insane. Once again – it will hit a ceiling (my personal math geek brain tell me $210 in mid June 2022) and will collapse down to $170 weeks later. However I do believe $150/barrel will be normal for the long haul people.
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