Bolling: Head for the Exits on Integrated Oil

Well, that statement took the bid out from under the U.S. dollar and that pushed oil up a buck -- a measly dollar to the oil market was like a small short covering an early morning rally. I was not concerned -- every dollar rally over the last three days had been met with selling. "Pawn" selling proved the market was ready for the imminent correction down to $110 again.

Later in the day, I began hearing rumblings of news that might get released in the afternoon. I was getting a bit nervous, so I covered the futures short and kept the DUG (short oil) position. I hate to completely miss an event I anticipate, so the DUG stayed just in case there was no news.

Then I heard that Congressman Bart Stupak was announcing that he found, in essence, nothing illegal going on in the oil price rise. I knew I was going to take heat. I immediately got long oil against the short position in the ETF. I knew what this meant. For weeks we had been hearing about these Congressional hearings and investigations into possible manipulation in the oil price. I am sure there were many pension fund managers, hedge fund managers and investment bankers sitting anxiously on the sidelines waiting to jump in if there were only some way to be long oil without the potential stigma of the wrong end of the Congressional finger-pointing as to the "causer" of that $4 gallon of gas.

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