        
Predictions for Monday, 28 July 2008
this page last modified on Thursday, July 31, 2008
In a word: oil.
I'm very bullish on Chevron (CVX) and BP (BP). I would buy oil on 28 July 2008 and hold for at least a month or two.
Commentary: Oil might seem a no-brainer in today's world. Not so. Gas prices do not correlate with oil company stock prices (no matter what the liberal stoners tell you). Chevron, for example, is essentially unchanged for the last 15 months (you would have made zero profit if you had bought Chevron in May 2007 and sold now -- so much for the greedy oil company executives just bleeding us for profit!).
Chevron and BP have some very favorable technical indicators right now. I haven't looked at any other oil companies, but I bet they're the same.
My high-risk/high-return picks:
Chevron August 85 call (at-prediction price: $1.55)
Chevron December 85 call (at-prediction price: $5.15)
Chevron January 2009 85 call (at-prediction price: $5.65)
BP August 60 call (at-prediction price: $2.85)
BP Oct 60 call (at-prediction price: $4.35)
BP January 2009 60 call (at-prediction price: $5.65)
Of course, you'd be crazy to buy naked options. When I say "high-risk/high-reward", I'm not kidding.
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