Oil Hits High For 2009 As Dollar Plunges

http://finance.yahoo.com/news/Oil-hits-high-for-2009-as-apf-14689253.html?sec=topStories&pos=main&asset=TBD&ccode=TBD

Alert! OIL has broken out of our top trading range of 48.00USD convincingly. This trend continues to confirm my long-term bullish stance on OIL which I disclosed in December of 2008 and stated the common sense reasons why I still remain bullish on OIL long term. This is what I said back in December of '08:

OIL - three reasons why you should buy / invest in oil now:

Supply and Demand (buyers vs. sellers and vice versa) - cyclically, oil is just too low. When oil was over 140.00USD, buyers simply dried up and oil went down to today's lows. Now that oil is below 40.00USD, sellers will also dry up and folks will have to buy and eventually cover all short positions.

2009 Hurricane Season & Summer - folks this happens every year; let's just hope, we never see another Katrina. However, the price of oil simply goes up in anticipation of the hurricane season and speculative trading based on the forecast. And do not forget the heavy driving Summer season - there is simply more consumption of oil during the Summer - the Winter has not been that nice to home owners either...

Geo Political Environment - it is very unfortunate that peace in the Middle East cannot hold up. It appears that any peace agreement in the area cannot be followed - the area may always be unstable and it is no secret to all of us that this is where most of the oil comes from. Now add to this Obama's promise to bring our troops back within 16 months of taking office. If we are having trouble now in the Middle East with our troops there, just imagine what the area will be like without our troops there? It is time to buy / invest in oil folks!
This is not scientific research and writing - just a little bit of common sense.

Again, just a little bit of common sense. Enjoy trading!

PS. You want to be careful at this point as both OIH and USO look a little over bought...