OIL: The Buy Of 2012
By Christopher Marasco:Oil, and thus Barclay's Crude Oil ETN (OIL) touched its lowest point since October of 2011. And the last time OIL's price breached the October 2011 low? May 2009.Hence, I am long OIL.
(click to enlarge)
(Note: Chart is 2010 - present)The oil futures have had a similar trajectory over the same time period, climbing 47.5% from its most recent bottom and falling 29.1% from the most recent high of $110.55(click to enlarge) (Note: Chart is 2010 - present)In the past few years, oil typically dropped in the summer months, and this year is no different. Personally I would prefer to enter a position later in the summer or even in the early fall, but the market presented a good entry price.Written below are reasons to be optimistic and reasons to be cautious about investing in crude oil.The commodity information below is patterned somewhatComplete Story »