Sunday, November 23rd, 2008

Volatile Commodity Prices Are Creating Short-Term Profit Plays

Sep 25th, 2008 | By Andrew Snyder | Category: Oil Investment & Alternative Energy

These are turbulent times for commodity traders. After Monday’s record surge, crude oil prices are edging back towards the $100-a-barrel mark again. Andrew Snyder says these wild gyrations provide great short-term profit opportunities for fast-moving investors. This mainly applies to small-cap stocks. Andrew says the market gloom has created bargains across all sectors for those who do their homework…

This from Today’s Financial News:

Oil stocks like Exxon (NYSE:XOM) and Chevron (NYSE:CVX) have been all over the place lately. Is the commodity boom finally over?

If you are an energy-industry investor, it is a good bet that you have quite a headache. With a free market getting artificial influence from nearly every direction, it is no wonder oil prices have been all over the place.

So what does this whipsaw action mean for investors? Well, for fast-acting investors it could lead to big profits. Pay attention to the news and invest accordingly.

Unfortunately, the big gains that were once possible from sudden crude price movements are much harder to find. Shares in big-name companies like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) tend to move in much slower, more calculated fashion these days.

Your best bet is to do your homework and search out the smaller companies that are impacted by oil-industry news. Or even better, stray away from the oil industry and concentrate on the countless other companies trading at unbelievably low prices thanks to the recent market shakedown.

There are all sorts of fantastic buying opportunities out there that will not give you headaches from their wild, unpredictable gyrations. The oil and energy sectors are just one area to find big profits. Do not forget about the rest of the market.

Source: Crude prices slip: Commodity investors turn and run


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By Andrew Snyder

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About the Author

Andrew is a contributor to Daily Reckoning Australia and Today's Financial News.

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Today's Financial News provides an independent and practical perspective on the U.S. and global investment markets. We provide you with a free, reliable, easy, up-to-date, and focused resource to help you make your financial decisions with commentary, interviews, recommendations, and video. Today's Financial News includes the analysis and opinions of those editors whom we have come to trust over the course of the years.

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