This is a post from staff writer Mark Roy.
Making Money off of Mubarak:
While Egypt mobs went from riots to block party on Hosni Mubarak’s resignation; gold, silver and oil were taking a huge hit.
Immediately following the news, oil started a 1.5% move downwards and gold dropped to below $1360.
What’s interesting about all of this is that oil has fallen from around $93.50, which was a triple top to current levels of $85. I think the Egypt situation has presented a buying opportunity for crude oil unless crude drops below $84.
Although Mubarak stepping down does mean the violence in oil-rich Egypt is likely to end, it wasn’t likely the violence would have affected anything with oil anyways. It’s not like the citizens are going to oil rigs and blowing them up or anything. That said, this excuse to sell oil presents a great buy!
I’d recommend buying USO March calls or futures if you have the money to do so.
Disclaimer: You should speak with your financial advisor before making any decisions about your personal portfolio.
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