When the oil bubble pops...

[BuyOnDips]

What stocks would you buy for a swing trade? What stocks would you sell?

I'm guessing the refiners would bounce up quickly. Airlines should jump. What else should benefit from oil quickly falling?

[Horsefish]

What stocks would you buy for a swing trade? What stocks would you sell?

I'm guessing the refiners would bounce up quickly. Airlines should jump. What else should benefit from oil quickly falling?


Since DOW chemical just raised prices to cover the higher input costs of petroleum they may be able to hang on to the higher prices while their input costs go down if oil drops. Could be really good for net profits. Same goes for other chemical companies.

That is IF oil goes down. Going back to $130 won't cut it.

[DSNT]

Cruise liners. Either CCL or RCL.

[numbers]

Transportation as an overall sector should go up nicely, except for land transports. Most land transports have yearly fuel buying contracts at a set price that are probably not affected by oil prices as much.

[nickel_buck_fifty]

If it ever happens I will be in DUG

[madcowdisease]

What stocks would you buy for a swing trade? What stocks would you sell?

I'm guessing the refiners would bounce up quickly. Airlines should jump. What else should benefit from oil quickly falling?

Something you may not thnk about but PG and DOW should also pop. Basically anybody suffering fro high input costs will benefit dramaticaly when/if oil tumbles. Personally, I'm hoping it crashes and burns every speculator the way the tech bubble did. PG is getting killed on plastics (at least Wall St thnks so) and DOW uses a ton of nat gas. You can easily extapolate from there. Just about everything will benefit from lower oil except, well, the oil stocks.

[aiki14]

I wouldn't get into any bubble popping plays right now. Trichet of the ECB is going to raise rates, which will hammer the dollar, and oil will go to the Morgan Stanley predicted $150/bbl.
Trichet met with Paulson yesterday and basically appeared to tell him to go home sonny.
Interesting how everything falls into place for these predictions.

[Survivor]

Akai, Do you even wonder if the U.S. can do something to fight back?
Who would have the backbone to crush all this mess.
The strategic reserve might crush the run in oil.
Our leaders are again hidden in this time of gouging the world for food and fuel.

[aiki14]

Akai, Do you even wonder if the U.S. can do something to fight back?
Who would have the backbone to crush all this mess.
The strategic reserve might crush the run in oil.
Our leaders are again hidden in this time of gouging the world for food and fuel.

The U.S. can do things to fight back
Nobody seems to have the backbone or intestinal fortitude to propose and carry out solutions, or their self interest doesn't want solutions.
The strategic reserve won't do diddly to hold the run on oil, and it's bad policy to use it for stop gap measures when we may need it for it's intended purpose, for example, if Israel/Iran erupts.
Our leaders are knuckleheads who are not clued in to what needs to be done, or they are oil men who are in great part responsible for the problem.

[Survivor]

Well, Its time for America to stand up and A Revolution is looking to be the solution.
We should not be subject to the detrimental effects of high fuel prices,this is the straw that will break the camels back. Unemployment and the crisis in everything really make the US look totally incompetent. I still belive this oil crisis is driven by big money and it has turned into the undoing of the US a whole. Beautiful.
An implosion that will destroy our nation,the attack is is our own backyard.
Jobs and peoples lives are being destroyed and these people just do not care,
Its pathetic. funny money.
A friend told me yesterday that in 25 years this will be the good old days.

[madcowdisease]

Well, Its time for America to stand up and A Revolution is looking to be the solution.
We should not be subject to the detrimental effects of high fuel prices,this is the straw that will break the camels back. Unemployment and the crisis in everything really make the US look totally incompetent. I still belive this oil crisis is driven by big money and it has turned into the undoing of the US a whole. Beautiful.
An implosion that will destroy our nation,the attack is is our own backyard.
Jobs and peoples lives are being destroyed and these people just do not care,
Its pathetic. funny money.
A friend told me yesterday that in 25 years this will be the good old days.

Sure is big money running up oil. The supply side is adequate and the dollar mumbo jumbo doesn't justify a 2 fold increase in oil or any other commodity if that is the rationale (CNBC said the dollar fell 3% agains tthe Euro year-to-date).

Goldman et al needs to make money. Tech is no longer an option, housing and selling collateralized debt obligations across the pond are not viable alternatives anymore, the market is going down so they turn to futures. If you want to crush the speculators just increase the deposit requirements from ~10% to 50% and oil will crash as all the speculators will have to ante up so to speak. It will create a vacuum of money in the system and oil will drop back to normal prices, say $60-70/bl, in a week. It would essentially cut the phony demand - actually just money flooding the system - five fold as Goldman et al could not buy futures on credit - actually a 10% deposit.

For example, imagine taking 1 trillion dollars and leveraging that 10Xs. You get 10 trillion flooding the futures markets. Now require the deposit to be 50% and that 10 trillion becomes 2 trillion to bid on contracts and you cut the demand five fold. Anyone can see oil plummets. Now the only issue is do other exchanges do the same thing? The SEC has the power to regulate American exchanges but does that money just move to London or Dubai? The last question is does the SEC have the power to prohibit WTI from trading on foreign exchanges?