After hitting a high of 8715 on May the third and a low of 6424 on the flash crash low, oil has barreled back to near the $75.00 a barrel area and it appears the great retrace is on. Oil rallied on the illusion of economic stability and a strong euro only to have those daydreams be shattered in financial deception. The oil market has come to a major decision point and may be getting ready to get back into a bull market mode. Yet oil, like a lot of the major markets, are at key technical turning points and they had better make it now or we are going to break it.The markets are acting like the ghosts of May and the nightmare of Europe are behind us and the market is acting like they want to believe again in economic aplomb.
The strongest China exports in 6 years have traders forgetting about their hot inflation. They had good debt auctions across the euro zone and now the markets want to try and believe the crisis in Europe never even happened. And besides Jean Claude Trichet says the euro is a stable currency. Why didn’t he tell us that last week and save us all a whole lot of worry! Yet seeing is believing. The stock market and the oil markets have to follow through and the bonds are going to have to break to keep oil going. The question is: Do you believe?Well I know.....
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The "Super Cycle" in Gold and How It Will Affect Your Pocketbook in 2010
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