Gold-Oil Ratio

[kidgas]

I found this link:

Kitco - Commentaries - John Lee, CFA

Note especially the chart on the gold-oil ratio. I agree that it might be wise to start going long oil. I am looking at the integrated oil companies and am likely to begin taking a position that exposes me to oil soon (as in January). I am currently exposed to energy in BTU, but would like to look at oil also.

 

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[Edge]

I have been long gold for about 3 weeks and oil for just over a week.

I have Jan09/Jan10 GLD calendar that is doing OK. A lot of people are expecting a short term pullback on GLD, i'll sell near month put spreads and buy long month call spreads if we do get the pullback. I plan on staying long GLD in some fashion for the next 2+ years.

For oil, I had a Dec/Jan USO calendar that puked all over me late last week. I also started selling Jan USO naked puts on Friday and will continue selling naked USO puts early next week. I really wish there were options on DXO, maybe once volume picks up my wish will be granted. I'd be having a lot of fun with that one, it's screaming triple digit gains for someone that can time the right short covering rally.