Crude Oil $100

Crude oil futures finally broke through $100 per barrel, although did not close above it.

Many people think this is really something. Well when oil was around $70 only years ago, $100 is something. But when oil was $99 in November 2007, $100 in January 2008 does not add to my blood pressure.

The first trading day of 2008 doesn't look very bullish. All SPY, DIA, QQQQ, IWM and XLF are all approaching their November lows again. So if they cannot hold that lows, expect another leg down. FXI is coming down as I wish (because I'm still holding FXP). FXI's first support is $160, which is last time's lowest in December, then the next support will be around $150 - the 200-day EMA. If FXI approaches the prices between the two supports I should cover my FXP.

I was so stupid. I didn't know there are ultra long and short ETFs in Canada trade on the exchange. Now I can trade with the ultra long and short of S&P TSX 60, Financials and more indices in Canadian dollar term. I know there will be 10 more coming up on the market. The ETFs I like are the TSX 60 (which is large cap), financials and agricultural. Now I can set up core financial mutual fund portfolio and at the same time, trade with the financial long and short.

My current view is still the same, little bearish for the short term future. Since in a long run China is still a place to invest, I'll wait for chance to go into China mutual funds and CAF.