Oil’s Back, You’re Screwed!

It seems every time  the stock market gains steam, the oil market punishes us at the pump. Remember when Bush fought so hard to give us stimulus checks, only to have gas go from $2.60 to $4.00. It took a CFTC investigation to shu off the herding hedge funds. Of course then they shorted it all the way down to $36. Now the recent gains in the S&P have put some margin money in the hands of the leverage kings, can anything stop them? Obama wont have a chance unless he steps in to correct it and that’s probably exactly what he’d do. A republican president did the same thing when oil was getting too high in the eighties, he announced that unless the price goes down we will not be buying any oil from the middle east. The next morning the energy market tanked, a statement that these days would have quite the opposite affect.

So here we are again, demand down, production up, PRICE UP? Huh? Huh, is exactly what the finance media outlets should be asking. But instead they interview five different analysts and pick the story that sounds good for the day. Another reason why fundamentals will never work for trading. Why isn’t anyone talking about about this? I feel like I am the Michael Savage of finance.

The nymex is still leanent on their rules if you are considered a bonified hedger alowing the instiutionals to leverage more contracts than everyone else. The large wire houses are also still selling OTC’s as an asset class. With the commodity brokers still playing follow the leader with everyone else we wont be seeing relief  at the  pump anytime soon.

So the lesson in all this is, GET LONG STUPID. Were only at $72. We’ve been here 3 times before, which should bring us way above $150, closer to $180. At that point maybe Obama will have a cash for fuel burning cars and a credit tword electric hybreds, in-turn bringing back the american car companies. I should work in the white house. Or I could eat rocks. Ya that one!