Thursday, September 23, 2010

EIA: Weekly Natural Gas Update For Week Ending Sept. 22nd

Since Wednesday, September 15, natural gas spot prices fell at most markets across the lower 48 States, with declines of less than 10 cents per million Btu (MMBtu). However, selected markets in the Rocky Mountains and at the Florida citygate posted considerably larger declines, falling by as much as $0.51 per MMBtu. The Henry Hub natural gas spot price fell $0.04 per MMBtu since last Wednesday, averaging $4.02 per MMBtu in trading yesterday, September 22.

At the New York Mercantile Exchange (NYMEX), the futures contract for October delivery at the Henry Hub settled yesterday at $3.966 per MMBtu, falling by $0.029, or about 1 percent, since the previous Wednesday.

Natural gas in storage totaled 3,340 billion cubic feet (Bcf) as of September 17, about 6.2 percent above the 5 year (2005-2009) average. The implied net injection for the week was 73 Bcf.

The spot price for West Texas Intermediate (WTI) crude oil decreased by $2.92 per barrel since Wednesday, September 15, ending the report week at $72.98 per barrel, or $12.58 per MMBtu.


Click Here For More Summary Data


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Oil Fails to Benefit from USD Weakness

Dataflow continued to weigh on the dollar, pushing other major currencies higher, yesterday. With the exception of the US energy sector, commodities were buoyed by a weaker dollar. Comex gold for December delivery soared to as high as 1298 before settling at 1292.1, up +1.40%. Silver rallied with the benchmark contract closing above 21 for the first time since mid-March 2008. In the base metal complex, copper surged to a 5-month high while tin jumped after Indonesia reported decline in exports in August. US oil prices erased gains made earlier in the day as oil inventories unexpectedly increased despite shutdown of the Enbridge pipeline during the week. WTI crude oil for November delivery ended the day at 74.71, down -0.35%. Prices for oil products also dropped with heating oil and gasoline losing -0.61% and -0.96% respectively.

The US house price index surprisingly contracted -0.5% m/m in July, following a downwardly revised -1.2% decline in the prior month. The market had anticipated a milder drop of -0.1%. Moreover, the MBA's new purchase mortgage applications index plunged3.3% last week, with the 4-week average down -37% y/y. The readings reminded investors the vulnerability of the housing market and would be taken as a factor pushing the Fed closer to further easing. The dollar tumbled, weakening against major currencies except for Canadian dollar. EURUSD added more than +1% despite disappointments from Eurozone's industrial orders and consumer confidence index. GBPUSD climbed +0.3% even though the BOE minutes hinted the central bank might move towards further easing.

Shrugging off the threat of further intervention, Japanese yen rose for a 3rd day against the US dollar. Concerning commodity currencies, AUDUSD hit a 2-year high and is approaching parity as RBA signaled further rate hike might be earlier than market forecasts. NZDUSD also edged higher yesterday but gains were erased in Asian session today as 2Q10 GDP growth missed expectations. Canadian dollar was the only major currency that fell against the US dollar yesterday. Canada's retail sales contracted -0.1% n/n in July after gaining +0.1% in the prior month. The market had anticipated a growth of +0.6%. Excluding auto, the decline extended to -0.5% from -0.3% in June.

Currently hovering around 74/75, crude oil price has dropped almost -6% year to date and around -15% from this year high of 87.15. However, OPEC appears satisfied with the price. The group will be meeting on October 14 but OPEC President Wilson Pastor said there are ‘no plans to change OPEC policies regarding production or prices… The world economy is growing, it's exiting the recession and as the economy grows, that will go hand in hand with robust growth in oil prices'. The comment was made although the group downwardly revised the 2011 demand forecast for its oil output earlier this month. Notwithstanding expansion in non OPEC production and abundant inventories in advanced economies, many OPEC members have been producing exceeding their quotas. In August, the 11 members bearing quotas produced 26.80M bpd, compared with the limit of 24.85M bpd. Compliance level climbed slightly to 53.5% from 52.6% in July but remained significantly lower than78.6% in March 2009.

Nigeria's Petroleum Minister Diezani Alison-Madueke said the country will ask OPEC to increase its quota from 1.673M bpd. The country produced 2.01M bpd in August. In our opinion, lack of commitment from OPEC members to control production in an environment of high oil inventory and flaggy demand in advanced economies would damp the outlook of crude oil price.

Courtesy of ONG Focus.....

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SP500 Pierces, Bonds Rally, Dollars Fall Out the Window

From Chris Vermeulen at The Gold And Oil Guy.Com.......

It’s been a wild ride the past few days OptionsX, Obama and FOMC comments. Seems like everyone is waiting to see what the market is going to do going forward at this pivotal point…

Since the market topped in April and has since been trading sideways in this rather large range, everyone has small positions at work but waiting for a decisive move before fully committing to one side. There could be a few opportunities in the coming days using bonds, the dollar and the SP500 if all goes well which I explain below.

Lets take a look at the charts.....

SP500 – SPY ETF, Daily Chart
There has been a lot of talk about a sharp rally if the SP500 could break the 1130 level or the neckline everyone is talking about. Well this week Obama was on TV and the market rallied into that, then again after. I don’t really thing investors or traders were buying things up as he said the same boring stuff he always says without anything new. I feel there could have been another force at work, which we can discus another time .

Anyways, the market pierced those resistance levels and I’m sure a ton of traders have switch their view on the market from bearish to bullish. While I prefer to trade with the trend I can’t help but feel this market is still range bound, which is why I am still bearish at these shakeout levels. The SP500 did break resistance BUT the following candle did not close above the breakout candles high to confirm the move.

That said, the market is now trading back down at support and the next couple of days I’m sure will shed some like on the direction.


20 Year Bonds – TLT Fund, Daily Chart
We have seen the bond price pullback in a bull flag formation. It touched support before bouncing to break short term resistance as it looks to have started another rally. The chart below overlays both the candlesticks of the bond price and the SP500 which is the white line. You will notice they have an inverse relationship. If bond prices continue to rally then lower SP500 could start to rollover.


US Dollar – UUP Fund, Daily Chart
The dollar has fallen sharply the past 10 trading session and it looks to be oversold for a couple reasons. The past couple days the price has dropped straight down and gapped lower. This recent drop has reached a gap window which will act as support and could provide a tradable bounce in the coming days depending how things unfold.


In short, the SP500 is flirting with resistance and has yet to confirm the breakout. Bond prices look to be headed higher which will makes me think equities could start to sell off any day now… It’s also important to note that the big banks GS and JPM shares have been under pressure and they tend to lead the broad market. Another point to add is the fact the oil has not rallied even though the dollar dropped like a rock? What happens if the dollar bounces? Could oil finally start its next leg down?

Gold and silver continue their steady grind up. The price action reminds me of the 2009 Nov –Dec move. Once that train de-rails its going to have a sharp correction…

You can get my ETF and Commodity Trading Signals if you become a subscriber of my newsletter. These free reports will continue to come on a weekly basis; however, instead of covering 3-5 investments at a time, I’ll be covering only 1. Newsletter subscribers will be getting more analysis that’s actionable. I’ve also decided to add video analysis as it allows me toe get more into across to you quicker and is more educational, and I’ll be covering more of the market to include currencies, bonds and sectors. Before everyone’s emails were answered personally, but now my focus is on building a strong group of traders and they will receive direct personal responses regarding trade ideas and analysis going forward.

Let the volatility and volume return!

Chris Vermeulen....The Gold And Oil Guy.Com

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Crude Oil Technical Outlook For Thursday Morning Sept. 23rd

Crude oil was lower overnight as it extends the decline off last week's high. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If November extends this decline, the reaction low crossing at 73.08 is the next downside target. Closes above the 10 day moving average crossing at 76.10 would confirm that a short-term low has been posted.

First resistance is the 20 day moving average crossing at 75.82
Second resistance is the 10 day moving average crossing at 76.10

Crude oil pivot point for Thursday morning is 74.85

First support is Wednesday's low crossing at 73.84
Second support is the reaction low crossing at 73.08

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Wednesday, September 22, 2010

Irans Option In Case Of Attack On Its Nuclear Facilities

The Obama administration recently announced its plans to sell $60 billion worth of advanced aircraft to Saudi Arabia, the culmination of a deal over which negotiations began in 2007. The package will include 84 Boeing F-15 fighter jets and another 70 upgrades; 72 Black Hawk helicopters; 70 Apache helicopters; 36 Little Bird helicopters. Reports also say that Washington may include a $30 billion package to update Saudi naval forces.

A 30 day Congressional review of the deal will likely begin within the next month and the White House is touting the deal as a major boon for the US economy that will support at least 75,000 jobs in the defense industry.

The deal is also designed to cement US preeminence in the Saudi oil sector, which is under significant threat from the increasing penetrations of Chinese, Russian, and Indian carbon economy interests. Saudi Arabia has the ability to pick and choose with whom it does business given that some are saying peak oil is already upon us.

US media is suggesting that the deal means that Israel no longer finds a threat in Saudi Arabia and sees the advanced aircraft package as containment against Iran. Speaking of which, sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain.

We have received all kinds of back channel dialogue from the UN General Assembly gathering in New York City this week so I include a special commentary from Claude Salhani, who has been covering terrorism issues in the Middle East for quite a number of years and checks in with a column titled, "Iran's Option In Case of Attack On Its Nuclear Facilities."

By Claude Salhani

Sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain. Earlier this month the tiny Kingdom of Bahrain announced the arrest of 23 men whom it accused of wanting to commit acts of terrorism and plotting to overthrow the government. Bahrain may well be the smallest of Arab countries yet it contributes greatly to the overall security of the Gulf region and the Middle East. Among other things Bahrain serves as the regional headquarters to the US Navy fleet operating in the Persian Gulf.

Strategically located at about halfway up the important sea lanes in the Gulf and through which most of the world's oil is carried from extraction sites to refineries aboard super tankers, the island nation of Bahrain is linked to the Saudi Arabian mainland by a 15-mile (24 km) causeway over the azure waters of the Persian Gulf. The causeway takes one into Saudi Arabia's Eastern Province, where the largest Saudi oil fields are located. Saudi's Eastern Province is largely Shiite.

Bahrain's population of 729,000 is composed of 70 percent of Shiites and the rest are Sunni. The Sunnis hold all the top positions of power in the country, from the king on down to every major office. The Shiites, who generally feel they are treated as second-rate citizens, relate to their coreligionists in the nearby Islamic Republic. Iran periodically likes to remind the Bahrainis that their island used to belong to Iran and that the Iranians have not forgotten that.

This is a part of the world where tensions run high and conflicts can easily ignite, particularly given that all the ingredients for an explosive situation are present: oil, religion and politics. The events that unfolded in recent days in Bahrain could well serve as the foundation for a John LeCarré novel, with one exception: this was no fiction. It's real and it could represent a very real and present danger to the security of the region. The men arrested in Bahrain were said to be working for "outside forces," the term usually meant to indicate Iran. Pointing the finger directly at the Islamic Republic can prove to be a dangerous gamble. Yet that language remains clear.

The report of an attempted coup in Bahrain is something that must be taken very seriously and should send alarm sirens wailing all the way from Manama, the capital of the tiny kingdom to the corridors of power in Washington. Tehran realizes two very important facts in case of attack against its nuclear facilities: First is that if attacked by Israel and/or the United States it will be incapable of striking back directly seeing the US' domination of the skies and Israel's quasi impregnable air defense system (with US contribution).

And second, Iran also knows that it must retaliate at all costs or lose all credibility. Hezbollah, the Lebanese Shiite paramilitary movement is in a perfect position to hit Israeli towns and cities from the north and could target large centers of population as far south as Hadera and possible further. Hezbollah's arsenal includes long range field artillery and Iranian supplied medium range rockets. From the south, Hamas, the Palestinian Islamic Resistance Movement can target Israeli locations the suburbs of Tel Aviv. Hamas' artillery is more antiquated and their Qasam rockets are home made and inaccurate, though they can still cause damage and casualties.

In the Gulf, Iran supports and arms and trains Kuwait's very own Hezbollah, who in turn is believed to have been supplying training and weapons to the Bahraini Shiites, such as the 23 men who were recently arrested in Bahrain. And of course one must not forget the influence Tehran carries in Iraq, where the US still has some 50,000 troops deployed and where Iranian-backed militias would very likely go on a shooting spree.

How seriously should one take the accusations?
Iran has periodically reminded Bahrain that the island is/was part of Iran. And if attacked by Israel and/or the US Iran might decide to push the envelope, especially if they feel they have popular support on the island.

Claude Salhani is a political analyst specializing in the Middle East and terrorism

Courtesy Oil Price.Com

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Phil Flynn: Crude Oil And The Fed

The Fed did not inspire the oil market even if they laid the groundwork for more quantitative easing in the future. With a glut of supply in the front end and the expiration of the October contract, the Feds less than glowing deflationary description of the economy was not enough to keep the oil bulls optimistic. When the Fed said that it prepared to provide additional accommodation (or printed money as I like to say) to support the economic recovery and fight off what they perceive as a deflationary threat, oil struggled to find its footing even as the financial and metal world responded. Gold dutifully rallied to all time high, oil prices continued to crumble and the reason was clear.

When the Fed tells us that household spending, while rising, is being constrained by high unemployment or that housing stats are at a distressed level, it is hard to get too excited about energy demand at a time of near record high supply. The question is not whether the Fed statement was bullish for oil because it was, but the question really is how far oil would have fallen if it were not for the Fed pointing to more quantitative easing. You see the price of oil can’t fall too hard because of its impact on overall inflation or deflation expectations and it can’t rally too high because we are in the weakest time of the year. With the October contract expiring into a near record.....Read the entire article.

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BOE may Ease Further, Conforming to Our View on Low Rate Environment

Crude oil recovered modestly but remained hovering around 75 level as the market awaits the oil inventory report. Stock markets were mixed in Asian and European session so crude failed to benefit much despite its strong correlation with equities. Gold resumed the uptrend after profit taking sent price to 1274 yesterday. Currently trading at 1294, the benchmark contract for gold has gained in 5 out of the past 7 days due to macroeconomic uncertainty and the Fed’s move closer to additional easing.

Stocks gained in Asian session as driven by Australia and Hong Kong shares. Just 2 days after RBA governor Glenn Stevens saying that Australia’s economy will growth above trend in 2011, Westpac Leading Index unexpectedly rose +0.4% m/m in July, following a contraction of -0.1% in the prior month. Australia’s S&P/ASX Index added +0.21%. In Hong Kong, the Monetary Authority said the city will grow at a moderate rate through the end of the year. This lifted the Hang Send Index by +0.21%.

In Europe, equities were generally lower with benchmark indices losing 0.5-0.9%. Eurozone’s industrial new orders surprisingly fell -2.4% m/m in July from a downwardly revised +2.4% growth in June. The market had anticipated a milder drop of -1.4%. As stated in the minutes for BOE’s September meeting, economic data released in the past month has showed a ‘reduction in growth prospects’. The minutes also revealed.....Read the entire article.

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Crude Oil Technical Outlook For Wednesday Morning Sept. 22nd

Crude oil was higher overnight as it consolidates below the 20 day moving average crossing at 75.81. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If November extends last week's decline, the reaction low crossing at 73.08 is the next downside target. Closes above the 10 day moving average crossing at 76.33 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 75.81
Second resistance is the 10 day moving average crossing at 76.33

Crude oil pivot point for Wednesday morning is 75.34

First support is last Friday's decline crossing at 74.10
Second support is the reaction low crossing at 73.08

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Crude Oil Rises on Forecast of Supply Decline, Weaker Dollar

Crude oil rose before a report forecast to show U.S. inventories dropped for a third week and as the dollar fell, spurring investor demand for commodities. The Energy Department will probably say that supplies slipped 1.75 million barrels, according to the median of 18 analyst responses in a Bloomberg News survey. The Dollar Index, a gauge of the currency versus six major trading partners, slid to the lowest level since March 17. “It makes sense that prices are heading higher this morning because today’s report is expected to show a sizable draw in crude oil stocks,” said Jason Schenker, the president of Prestige Economics LLC, an Austin, Texas-based energy consultant.

Crude oil for November delivery rose 94 cents, or 1.3 percent, to $75.91 a barrel at 9:02 a.m. on the New York Mercantile Exchange. Futures are up 6 percent from a year ago. Brent crude oil for November settlement gained 37 cents, or 0.5 percent, to $78.79 a barrel on the London based ICE Futures Europe exchange. The Dollar Index slipped 0.7 percent to 79.844. The U.S. currency traded at $1.3374 per euro, down 0.8 percent from yesterday, after touching $1.3418 per euro, the lowest level since April 17.....Read the entire article.

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Tuesday, September 21, 2010

Stephanie Link: How to Buy Energy Stocks

Stephanie Link, director of research for TheStreet, reveals her trade on BP now that the oil leak is dead and unveils her ideal energy portfolio.



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Stock Market and Commodities Commentary For Tuesday Evening

The S&P 500 index closed lower on Tuesday as it consolidated some of the rally off August's low. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional gains are possible near term. If December extends the aforementioned rally, the 75% retracement level of the April-July decline crossing at 1152.70 is the next upside target. Closes below the 20 day moving average crossing at 1089.49 would confirm that a short term top has been posted. First resistance is today's high crossing at 1143.70. Second resistance is the 75% retracement level of the April-July decline crossing at 1152.70. First support is the 10 day moving average crossing at 1116.75. Second support is the 20 day moving average crossing at 1089.49.

Crude oil closed lower on Tuesday as it extends last week's decline. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If October extends the decline off last week's high, August's low crossing at 70.76 is the next downside target. Closes above last week's high crossing at 78.04 are needed to renew the rally off August's low. First resistance is the 10 day moving average crossing at 75.19. Second resistance is last Monday's high crossing at 78.04. First support last Friday's low crossing at 72.75. Second support is August's low crossing at 70.76.

Natural gas closed higher due to short covering on Tuesday and above the 20 day moving average. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. If October extends last week's rally, the 38% retracement level of the June-August decline crossing at 4.321 is the next upside target. Closes below Monday's low crossing at 3.806 would temper the near-term friendly outlook. First resistance is last Friday's high crossing at 4.060. Second resistance is the 38% retracement level of the June-August decline crossing at 4.321. First support is Monday's low crossing at 3.806. Second support is August's low crossing at 3.697.

Gold closed higher on Tuesday posting another new all time high as it extends the rally off July's low. Stochastics and the RSI are overbought but are bullish signaling that sideways to higher prices is possible near term. If December extends the rally off July's low, upside targets will now be hard to project following yesterday's rally to a new contract high. Closes below the reaction low crossing at 1237.90 would confirm that a double top with June's high has been posted. First resistance is today's high crossing at 1290.40. First support is the 20 day moving average crossing at 1255.70. Second support is the reaction low crossing at 1237.90.

The U.S. Dollar closed lower on Tuesday extending the decline off August's high. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends the decline off August's high, March's low crossing at 80.18 is the next downside target. Closes above the 20 day moving average crossing at 82.53 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 81.96. Second resistance is the 20 day moving average crossing at 82.53. First support is today's low crossing at 80.42. Second support is March's low crossing at 80.18.

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Which Came First, God or the Government?

From guest blogger Keith Schaefer at Oil and Gas Investment Bulletins.....

CEO Tom MacNeill likes to throw that line out to investors as he explains the opportunity at 49 North Resources Inc. (FNR-TSX). 49 North is a specialized venture capital company that is quickly morphing into a fast growing oil producer, with a twist. It’s focused solely on Saskatchewan. The map that illustrates his point shows a stark contrast between Alberta and Saskatchewan. In Alberta, the map has an abundance of oil and gas properties being developed. Moving east across the border in Saskatchewan is like falling off a cliff; there is a dramatic and immediate drop off in the amount of activity in oil and gas.

The productive oil and gas geology doesn’t stop on a dime like that, says MacNeill. He sees huge opportunity in that map. His theory is that 40 years of socialist governments in Saskatchewan have slowed the development of the province’s energy resources, but the new business friendly government of Premier Brad Wall has created a huge wealth of opportunity for energy entrepreneurs like himself. “This is early days (in resource development) in Saskatchewan. The only thing that’s held us up in Saskatchewan is politics. We are at Year 1 in a 50 year process. We have 50 years of upside,” he gushes.

“Use Alberta as an analogue,” he adds, noting that Saskatchewan already has more conventional oil production than Alberta. “We do 500,000 bopd of conventional production. Alberta production peaked in 1983, 40 years after (the original) Leduc #1 (well). We are 40-50 years away from Peak Oil (in Saskatchewan).” 49 North has a suite of mining and oil and gas assets, but has recently been increasing its energy weighting. As is typical of these public venture capital companies, it trades at a 40% discount to its Net Asset Value.

MacNeill has invested directly in several oil and gas land packages, and has production net to 49 North of 80 bopd now, but hopes to have an exit rate of 1000 bopd from its 10 net section land package that produces from the Viking formation “This is not exploration in the Viking. We can do 16 wells per section and we have 10 sections.” 49 North had 100% success on the five wells it drilled last quarter. MacNeill joint ventures or buys out many small operators, and helps them get big fast. “We have so many opportunities, we could make swiss cheese out of this province” he says. “We’ve done a lot of geophysical work in this province. We have a lot of proprietary information from mineral exploration work we’ve done in our mining assets, and there are great synergies there (for oil and gas).”


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EIA: Financial News for Independent Energy Companies

Independent energy companies (including oil and gas producers in addition to oilfield companies) reported a 77 percent increase in income in the second quarter of 2010 (Q210) to $3.4 billion.

Oil and gas producer revenues increased sharply along with crude and natural gas prices, and earnings rebounded from losses in Q209 to their highest second quarter level in the 2005-2010 period.

Oilfield company revenue and earnings increased modestly in Q209 but remained well below the Q2 average over 2005-2010.

Ethanol producer revenues increased and earnings crossed into the black after losses in Q209.


Read the entire EIA article.

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Phil Flynn: The Recession Is Over!

The recession is over! Now don’t you feel better? Well at least for a day the stock market sure did and oil and the products decided to go along for the ride as the market once again found a reason to believe. Still it appears that the joy that we are seeing in the market place is not all about the fact that the recession is over but a growing belief in the market place that the Federal Reserve is going to lay the ground work at todays FOMC meeting for another round of quantitative easing.

Oh sure, the expectations are not high that the Fed will do anything today but based on market action, if they do not drop any quantitative ease hints, the market will be a bit disappointed. Still the markets that seemed to be showing the most anticipation of Fed action such as gold and treasury bonds, seem to be a bit toppy after their recent spine tingling surge as they seem to be either getting ready to sell the fact after buying the rumor or perhaps they feel that the Fed may just disappoint them.

The oil market also has to look to the Fed as it is the Fed that is keeping the market from collapsing. While the petroleum market may see a big drop in supply this week due to transitory issues such as the Enbridge pipeline outage and the double trisect of tropical storms and hurricanes the truth is that we have more than ample supply. That is being reflected in an increasingly bearish outlook by crude option players. Oil may start to worry more about geo-political issues as we move forward.....Read the entire article.

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New Video: Has the Price of Gold Reached its Zenith?

Today we are going to be looking at gold and analyze the recent run up that has created a great deal of excitement and fear for many investors and traders.

We're also going to be looking at some upside measurements that we have for this market. Conversely, we are also looking at an area that should provide support should the gold market pull back from its current levels.

In this new video we are going to be focusing on our "Trade Triangle" technology and what it means for traders. We will explore short term, intermediate term, and long term trading in this precious metal. This will all be done using our "Trade Triangles."

As always our videos are free to watch and there is no need for registration. We hope that you enjoy the video and that you share your comments.

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Crude Oil Technical Outlook For Tuesday Morning Sept. 21st

Crude oil was lower overnight and remains poised to renew last week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If October extends last week's decline, the reaction low crossing at 71.53 is the next downside target. Closes above the 10 day moving average crossing at 75.27 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 74.48
Second resistance is the 10 day moving average crossing at 75.27

First support is last Friday's decline crossing at 72.75
Second support is the reaction low crossing at 71.53

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Monday, September 20, 2010

Where is Gold and Crude Oil Headed on Tuesday

CNBC's Sharon Epperson discusses the day's activity in the commodities markets, and looks ahead to where oil and gold are likely headed tomorrow.



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Stock Market and Commodities Commentary For Monday Evening

The U.S. stock indexes closed higher, near the session highs and hit multi week highs today. Bulls have gained good upside near term technical momentum recently as the bulls have "climbed a wall of worry." While the months of September and October have been historically unkind to the stock market bulls, the indexes are getting through the month of September in good shape, so far. My bias is that if there were to be serious market stock market turbulence during the months of September and October, it would have most likely occurred in early September.

Crude oil closed up $1.10 at $74.76 a barrel today. Prices closed nearer the session high today and saw short covering. Bulls and bears are back on a level near term technical playing field. The next near term upside price objective for the bulls is producing a close above solid technical resistance at last week's high of $78.04 a barrel.

Natural gas closed down 19.1 cents at $3.833 today. Prices closed near the session low today. The bears still have the overall near term technical advantage and regained some downside momentum today. The next upside price objective for the bulls is closing prices above solid technical resistance at last week's high of $4.144.

Gold futures closed up $3.60 at $1,281.10 today. Prices closed near mid range today and did poke to another fresh contract and all time record high today. A weaker U.S. dollar index today helped to boost gold. The fact that volatility in the gold market has not increased significantly with prices now in uncharted territory is a bullish clue and suggests the modest uptrend in prices can continue. Gold bulls still have the solid overall near term technical advantage. There are still no early technical clues to suggest a market top is close at hand.

The U.S. dollar index closed down 3 points at 81.60 today. Prices closed nearer the session high today. Bears still have the overall near term technical advantage. Bulls' next upside price objective is to close prices above solid technical resistance at 83.31.

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Whiting Petroleum Launches $350M Note Offer

Whiting Petroleum Corp. said Monday it has launched a public offering of $350 million in senior subordinated notes to repay other outstanding debt. The notes will be due in 2018. Banc of America Securities, J.P. Morgan Securities and Wells Fargo Securities are the joint book-running managers.

Whiting explores for oil, and natural gas in several parts of the U.S. Its largest projects are in North Dakota, Oklahoma and Texas. The shares rose $3.50, or 3.8 percent, to $96.28 in regular trading before the announcement. In extended trading, they added 3.8 percent to $96.28.

Courtesy The Associated Press


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Diversification Doesn't Work Anymore

Find out how Wall Street has sold the myth of safety in diversification for years to unsuspecting investors everywhere.

Now you can learn from this timely 10 page report that exposes the myth of diversification and how it can cripple your financial future if you do it the Wall Street way.

This Is Not About Derivatives
Before I go any further, we are not talking about exotic derivatives, the kind that tanked the economy and sent a financial tsunami through Wall Street. No, we’re talking about the major markets, mainstream shares, the kind of shares you hear and read about every day.

We Have A Solution
In this in depth report on diversification, you will learn how one simple adjustment can easily open up the money spigots and turn the tables on Wall Street. This one simple adjustment can put your account in the black faster than you can go to our website. This new solution, which we fully reveal, can turn your retirement account into the financial powerhouse that it deserves to be.

A Non Wall Street Portfolio
Also included in the report is a model portfolio that proves that diversification can work when it's done the right way. Using the Wall Street method of diversification you would have lost close to 30% of your money! In the “Global Strategy Portfolio” included in the report, you would have made a 23% return on your money during the exact same timeframe. That’s an over 50% swing in just 30 short months. In the report we show you not only how to achieve these results, but we also share the rules that you need to follow in order to get the exact same results in half the time, with less risk.

What Is The Cost?
If you do nothing and don’t download this special report, it could cost you thousands of dollars in losses in your portfolio over the next few months. However, if you call or click on the link below, the report is free of charge along with our “Global Strategy Portfolio.”

ACT NOW AND RECEIVE THIS REPORT BY EMAIL

Call or click to receive your personal copy of this timely report and it can be in your hands in the next 3 minutes. This report is free of charge and there is no obligation. We guarantee that this report on diversification will have you laughing all the way to the bank.

Click HERE to get your report immediately!



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