We played oil short on the way up yesterda in our Member Chat and I know that sounds strange but oil was $97.50 in the morning, when we first shorted it and fluctuated around that line until the 10:30 inventories when, as expected, we got a nice $1 drop to $96.50, which was good for gains of $1,000 PER CONTRACT on the /CL Futures. My idea to put 10 of those contracts into the Long-Term Portfolio was good for $10,000 just 3 hours after I wrote the post – not bad for a day's work. Even better – this morning we're lined up to do it all again!
We had another nice drop from our $97.50 shorting line back to $97 for another $500 PER CONTRACT gain (x 10 = $5,000) and this morning we once again can do the same at $97.50 so please, don't say I didn't tell you so – because this is me telling your so! Of course, if you want to make REAL money, you've gotta be a Bankstser like Blackstone (BX), who made AT LEAST $15.6M by buying a Credit Default Swap against a loan made by GSO Capital Partners to Codere SA in Spain (a transaction BX had no interest in).
BX then arranged a $130M loan to Codere ON THE CONDITION THAT THEY DEFAULT ON THE GSO LOAN, which triggered the swaps and made BX instant profts of about 10% of their loan as a bonus. I know it sounds like insurance fraud but it's actually legal (maybe not moral, but who cares if it makes money, right?) and BX was not the only Codere lender to benefit. The company is complete junk (rated) and the more they borrow, the more the CDS's pay off!
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So no reason to feel guilty about paricipating in the NYMEX scam – we're saints compared to the Big Boys! Don't forget, just like running up the price of oil and gasoline on weekends to screw US consumers out of…
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