Oil Prices June 9/08
Forexmentor.com Forex Trading Price Action
Oil be damned! As I’ve said before, I think that speculators (and other participants, like hedge funds) have had a field day driving oil prices through the roof. And, some smart money players have been hedging against the falling U.S. dollar too. But, the party may soon be over. Even George Soros has called the recent meteoric rise in oil prices a bubble waiting to burst. So, no need to rush out and buy that Prius or Smart car just yet. Help is on the way.
Emerging Asian countries are gradually eliminating their fuel subsidies. Add to that factor drivers not driving so much anymore due to the high cost of fuel, and you have a recipe for lower oil prices – as world demand for oil dips below available supply. As well, Bernanke has gone on record as favoring a strong dollar, and appears to be disposed to shoring it up. Add to the mix the CFTC’s investigation into oil futures trading, and you have a sound argument for oil prices peaking sooner than later. When I heard today on CNN (Friday, June 6/08) all the euphoria and hullabaloo about oil going over the 139 mark, I knew the end was near.
How’s that for contrarian thinking for you? As you can tell, I am not a crowd follower. At age 65, 95 percent of people are dead broke or dead. Well, I can’t speak to the reason for such untimely death, but I surmise that financial woes at such a late stage in life are attributable in part to people not seeking their own counsel, but following the maddening crowd into financial oblivion.
And that’s Peter R. Bain’s take on things at www.forexmentor.com where you will always find out how to do technical analysis, currency trading.
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