Shorting Oil Futures, Long Gold Futures: Gersch

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June 16 (Bloomberg) --Altimus Capital Portfolio Manager Chris Gersch and Bloomberg’s Gregory Bender discuss the price of oil on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Geopolitical concerns in the middle east, is it something that lasts and goes away?

On the one hand you had a market driven by technicals.

A series of high or lows broke through 105, which is clear resistance on high-volume.

We are seeing a surge in options volumes, on the u.s. etf that tracks the bti.

Is that speculators entering the market?

We are going to be back in this range once this blows over.

We broke through 105 on wti.

Is this on the way to 110 or do we fall back?

I think it was a key pivot point.

Athe socioeconomic pressures are continuing to mount in iraq.

We may then pull back below that support and it will be an area of resistance.

Gold has not fallen through the way the pricing oil has.

Shorting the oil contract if it doesn't pick up on some of the momentum on that 4% move.

I of course all contracts control a thousand barrels, which means for every dollar oil -- it is too bad.

What is the tipping point in this oil markets?

Was the point people turnaround and turn the wheel?

I believe the 110 level is that key point.

I think you are going to have a lot of people pushing the pressure on production.

That was just a technical breakout of something.

If we do fall back below that handle, i think a lot of traders are going to go back into possibly seeing the 100 handle.

A 100 before the 110. icy tension individual east.

Then i see wti moving.

Why is the bti moving?

, brent has not moved at all.

Brent moved over 110. both clear technical breakout levels.

It begs the question again, where is the more fundamental move coming?

Of course you're going to have guys that hedge in.

If you look at the speculators, is this a move you see coming over the last couple of months?

Speculators are more short-term driven.

I think it is interesting we saw this surge in options buying.

They were under position for this move.

What is the fallback to 105? how does this play out?

I believe in one month we see china marking their inventory.

U.s. inventory is down the little bit.

We will leave it there.

Thank you very much.

Brent trading at $100 per barrel.

We had the big pump hi last week.

Markets again in 30 minutes.

Thank you so much.

We are awaiting some economic

This text has been automatically generated. It may not be 100% accurate.


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