The conflict in Libya continues to spark concerns over possible supply problems, sending oil prices soaring over the past couple weeks and settling at a two-and-a-half year high this afternoon.

In addition to Libya, oil also got a push today from a falling U.S. dollar. The greenback was down in reaction to speculation the European Central Bank would be raising interest rates, to fight possible inflation.

Continue reading Oil Closes at Two-and-a-Half Year High

Oil Closes at Two-and-a-Half Year High originally appeared on BloggingStocks on Thu, 31 Mar 2011 18:00:00 EST. Please see our terms for use of feeds.

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I first wrote about Schlumberger (SLB) here on May 6, 2009, at a price of $56.09. Shares of oil and natural gas servicer have jet-streamed toward major, psychological resistance at $100, easily clearing $90 on the way. It goes without saying that if you haven’t already, now would be a good time to consider taking some profits off the table.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain, as SLB will likely continue to head north.

Further, I’d raise the sell/stop loss to $68 from $63.

Continue reading Schlumberger Vectors Toward $100 a Share

Schlumberger Vectors Toward $100 a Share originally appeared on BloggingStocks on Sun, 06 Mar 2011 14:50:00 EST. Please see our terms for use of feeds.

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If, as an investor, you’re surprised by the ongoing anomaly in the oil/natural gas relationship, you’re not the only one.

The background: Oil historically trades at about 8 times the price of natural gas. Currently it’s trading at 25.8 times natural gas. About three months ago, the ratio was 20.

In late Tuesday afternoon trading, oil (West Texas Intermediate) was up $3.60 to $100.578 per barrel, while natural gas was down 16 cents to $3.88 per million British thermal units (MMBtu).

Continue reading Oil and Natural Gas: The Anomaly Continues

Oil and Natural Gas: The Anomaly Continues originally appeared on BloggingStocks on Tue, 01 Mar 2011 18:00:00 EST. Please see our terms for use of feeds.

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The most recent datapoint of significance for investors has to be the U.S. Federal Reserve’s revised summary of economic projections.

The Fed now sees a stronger U.S. economy in 2011, with the world’s largest and most technologically advanced economy expected to grow 3.4% to 3.9%, up from the 3.0% to 3.6% November projection.

The Fed also expects the U.S. economy to grow 3.5% to 4.4% in 2012 and 3.7% to 4.6% in 2013, compared to the November estimates of 3.6% to 4.5% and 3.5% to 4.6%, respectively.

Continue reading Ray of Light: Fed Sees Adequate U.S. GDP Growth for 2011-2013

Ray of Light: Fed Sees Adequate U.S. GDP Growth for 2011-2013 originally appeared on BloggingStocks on Sat, 26 Feb 2011 12:50:00 EST. Please see our terms for use of feeds.

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In the 1630′s, it was tulips. More specifically, it was Semper Augustus, a tulip of extraordinary beauty; deep, deep blue with a band of white and touches of crimson flares. In its day, it was the must have thing. There was one man who owned the dozen flowers known to exist. He was offered the equivalent of one year’s annual income from a wealthy merchant for one bulb. He turned it down.

Tulip prices increased throughout the decade as more speculators got into the game. In 1633, a farmhouse was traded for three rare bulbs. By 1636 any tulip could be sold for extraordinary sums. Futures markets started. Trades were made in fields or taverns, between farmers and merchants. Some bulbs were bought and sold 10 times in a day. One father left his seven children an inheritance of 70 tulips. One sold for the all-time record price of 5,200 guilders.

Then, one day in 1637 everyone decided to stop playing. No buyers showed up at the local tulip auction in Haarlem. Within days, panic started, then spread. Tulips that sold for 5,000 guilders soon went for less than 50. (Source: Tulipomania by Mike Dash)

Continue reading Comfort Zone Investing: Bubbles Always Burst

Comfort Zone Investing: Bubbles Always Burst originally appeared on BloggingStocks on Sat, 26 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

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