Here is the Saudi TASI index. To me it is important to see it hold here, as it would mean investors are taking the OPEC agreement as serious. Which would give me a sense where i should renter my long oil position.

At the same time we have seen speculators pile in to buy the USD against the SAR Saudi Rial cause a spike in the PEG to the USD. We have seen this happen twice before since 2014. As you can see in the chart below. I do own the USD long and short the SAR in my personal account just for the fun of it. Risk reward is awesome. Either it stays where its at 3.75 (even if oil goes to $250) or by some miracle it De-peggs OR FLASH CRASHES! and I get a 30 to 50% devaluation in the SAAR and I schitt myself with worthless FIAT Dollars. Can’t lose! 😉

Author Jim Boukis