I want to point out the blow off top today on the Price of oil. I have spoken of a blow off top soon to come and today it came. I have been saying that the price of oil will collapse as the economy slows. I will have my nay sayers as always but the point I am making with this concern or subject matter is the fact that it is healthy for our recovery and it must happen and will happen as demand falls. Today to back up the many claims of my past posts the main stream media speaks of what I wrote of months ago, that oil demand will slow and OIL WILL NOT GO MUCH HIGHER before it falls to the $65 to $75 per barrel range.
I have already written that Goldman Sachs claim that oil could see $200 per barrel soon was not going to happen and that they are wrong about a price surge like that anytime within the next 5 years.
The future I wrote of is now here, oil has a blow off top.
"But the mass selling Monday — despite the Fed's Sunday rate cut, the prospect of another cut at the Fed's regular Tuesday meeting, and the fact that the dollar dropped to new lows against the euro on Monday — could be a sign that the oil market's momentum has turned negative, analysts say."
"Still, gas prices are expected to rise as demand picks up in the spring and summer. In its most recent forecast, the Energy Department said it expects gas prices to rise to about $3.50 a gallon, while many analysts say prices could peak between $3.75 and $4. Those estimates could fall, if oil remains on the retreat."
VFRTXN SAYS....the price of oil has topped and demand will fall this spring and summer and the price of gas is going to be lower than it is right now.
COMMODITIES HEAD FOR RECORD DECLINE
Now if the FED is smart tomorrow it will leave interest rates alone. Let the market go Ben. They are strong enough to take care of themselves now. Tell the world that you have FAITH that the markets have enough strength to correct themselves without further rate cuts. You have over done the rate cut thing. It was good early on but you have way over done it, you have over shot what is healthy and stable, you have crossed over into the FEAR FACTOR ZONE into a room called panic mode. You need to leave this room as fast you can with the herd following, close the door on the panic by declaring a surprise show of faith in the markets. Quit feeding it's weakness and tell the herd the market can and will take care of itself now.
I can promise you this if you don't you are going to send the markets into a further hole and a deeper depressed state of mind. Pull the rate cut pacifier now.
Love,
V.
1 comments:
I highly doubt they'll go with no cut tomorrow because of the banking situation although I agree that they've really gone too far with the cuts. I don't think it's the economy per se that will influence their decision but rather the repercussions in terms of LEH, MER, or GS if they don't cut. With a 75 or 100 basis pt cut, the commodities will spike again although it may be the last gasp for oil before it finally retreats. SK
Post a Comment