2011 Oil Demand Is Back – But Is OIH Already Hitting Short Term Highs?

Oil demand for 2011 seems to be back on track for growth. Numbers released by the EIA signal continued US demand, not to mention the strong growth from emerging markets. As a result both crude Oil and the Oil Service Holders ETF – OIH – have had some impressive two month gains.

All this sounds news should be great for the Oil Service Holders ETF OIH right? Well, what if all the data and expected growth has already been priced into the ETF?

Considering OIH has made a huge run and is now right underneath a major trend-line, I generally feel that buying puts on OIH is a great trade back down to near $110 (at the most). After that we could absolutely see prices continue to trend higher.