Beware the Market Maker Trap

Be careful with oil prices. This could be a wild week in the commodity space.

Good Morning:

The focus this morning centers on oil and gas.

Naturally, there are hyper “bullish” calls on oil given the state of affairs between Israel and Iran. I find it very difficult to trade things in the center of the conflict, and instead start to look at where money is exiting as the primary way to trade.

Yes, oil could easily surge to $90 per barrel. And if that’s the case and what you’re interested in doing from a daily perspective, tune into my show this morning. You’ll see how I keep my short-term focus on oil prices and keep trades very tight.

Many traders and investors are gamblers. They’ll try to speculate to the upside.

\They’ll even buy calls on things like the SPDR Energy Select Sector (XLE) or the UCO (BULLISH OIL FUND). Proceed at your own risk - as many traders and market makers would LOVE to sell you calls because they’ll be making money no matter how you slice it.

I’m going to do the opposite. I’m going to be patient and wait for the selloff. Because there will be o…