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Time to short oil again?
Marla Guthrie
Jun. 2, 2009

It is time to short oil again. Not so fast. In the next three months when the oil market will explode upwards and then tumble down. This time the bottom will be below $20 a barrel. Oil most likely will top out between $80 and $99 a barrel. Yes there will be a fabulous rally – “mother of all rallies ever seen” before the bottom falls out. The rally will continue till August-September.
It will be a fabulous rally up and a collapsing crash down below twenty from $90 a barrel. The hedge funds are buying Indian and Chinese stocks along with oil and other commodities. This time the money from Government bank bailout is being used to inflate the bubble. The third wave down will be all on a sudden and catastrophic. The private equity and hedge funds will be wiped out. So will the Governments get into deep fiscal trouble?
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