Exxon, Bin Laden, and Jed Clampett

My heart goes out to everyone who was long oil this week.  Lots of news speculation blaming everything from the bashing of oil companies in Washington to the death of Bin Laden.  Who knows?  Maybe Jed Clampett was outside, shootin' at some food....

In fact, however, oil's humbling this weeks illustrates what happens when a commodity that's so widely held, which is selling at far below what many investors paid at their entry point, begins to lose momentum.  Picture all those people who've been holding on for months, years, hoping to "get back to even" at $50, $100, $140.  A couple of downticks sends many of them rushing to liquidate holdings and inventory.   And up through the ground comes a bubblin' crude.

Much better to buy at a new high, and sell even higher.   Or you can always pick up your shotgun, and go out back with Jed.