http://www.cnbc.com/id/102087449#.
quote:
force that is controlling the price of crude is the buyers and sellers themselves, as a result of forced liquidations and margin calls among overly bullish hedge funds.
the hedge funds selling crude did not sell, and are now being forced to sell because they bought these future contracts on margin. Now that the value of these contracts has dropped, the margin clerks at investment banks are requiring them to put up more capital or sell their positions.
He thinks that perhaps this hideous drop in oil could really just be a case of hedge funds gone wild with weak hands. If Garner is correct then he thinks that once the forced liquidations end, then there could be brighter days ahead for oil bouncing back.
Back in the end of May, Garner predicted that the market would see a hideous decline in oil, precisely because the bullish hedge funds bit off more than they could chew. She called the decline, and Cramer thinks she could even call the bottom, too.
End Quote:
Hope hes right... it certainly seems oversold and this stacks
SEA Price at posting:
$1.08 Sentiment: Buy Disclosure: Held
