http://globalcapital.blogspot.com

Found these two facts interesting today:

1) Volume in the two new leveraged ETNs to take long and short positions in crude oil was fascinating. The volume of SHORT traders in crude oil in these two ETNs is 35 TIMES more than the long positions. The symbols are DXO (long) and DTO (short). I posted the charts here:

http://etfchart.blogspot.com/2008/07/crude-oil-shorts-blowing-away-longs-in.html

2) Long traders in crude oil have much more capital than short traders (the apparent reason on the surface is that they have more money BECAUSE they are long, but sometimes what seems obvious can be WRONG). Thus, by increasing margins or otherwise restricting speculative trading, we will force the shorts OUT of the market and prices will go HIGHER!