Editor's note: This story was originally published on RealMoney on May 25 at 2:10 p.m. EDT.
Not $30, but not $70. Maybe not $40, probably not $60. How about $50, though? Does that make sense?
That's the level we seem to hug, no matter what; that's where we seem to want to live.
I'm talking oil here, and I have to tell you that if oil were a stock, you would be saying, "Every time this sucker gets below $50, I want to buy it, but if it rallies much to $55, I am out of here."
Of course, it isn't oil. It's a future on a barrel of oil, and, perhaps because it isn't a stock, there's way too much emotion involved. Every time we see the future pierce $50 on the downside, you get people talking about $28 again.
Today, with oil above $50, I see an interview on the tape with Charlie Maxwell, an old oil vet, talking about $70.
Bottom line: Take the emotion out of it. This sucker likes $50 and change. That's where it lives. Get used to it.
And invest that way.
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