August 22, 2011

SHORT SELLING OIL (USO, BNO, BZ)

BNO is an ETF representing Brent crude oil. This is the type of crude oil produced in Libya. With a resolution of civil war in Libya, BNO is likely to come down.

We are staring a 5% tranche right here at $71.73. Our plan is to short more if BNO goes higher. Due to high volatility, we will not temporarily put a stop and will rely on keeping the quantity small as a measure of risk control.

We are also short selling BZ futures at $109.

Please note we are not shorting USO.

Updates are available on these positions in real-time on the Real Time Feed of the ZYX Short Sell Change Alert.… Please click here or the title below to read more.

August 22, 2011

THE BEST INVESTMENT PLAY ON LIBYA IS ENI SPA (E)

The regime of the strong man Muammar Abu Minyar al-Gaddafi appears to have failed. For American investors, there are no easy direct investment opportunities in Libya. Fortunately, there is a gem that trades in the good old USA that investors may want to keep on their watch list. The gem is ENI SpA (E), an Italian company that trades on NYSE.

Libya is a tribal society, and it appears that fracturing of the country along tribal lines is a strong possibility. To properly time entry into the investments described below, investors will need to develop a basic understanding of the geography of Libya.… Please click here or the title below to read more.

August 22, 2011