Here are a few numbers to look at on the downside and upside.
Downside- 984 then 972.
Upside 1014 and 1028
Wednesday, September 2, 2009
Oil speculation
There is a growing effort to curtail what they call speculators out of the Oil market. The problem I have is this is just another interference of market dynamics and as proven by last year run of $150 target on Oil, that whatever speculators do, the underline commodity will find it true price in a free market.
The suggestions I hear on the talking head shows in my opinion will make manipulation in the market more rampant and thus prices will be distorted again. To solve the problem, just leave it alone! Yes we will have blimps on the charts as any other market but it will find it true price under technicals and economics of the market.
The suggestions I hear on the talking head shows in my opinion will make manipulation in the market more rampant and thus prices will be distorted again. To solve the problem, just leave it alone! Yes we will have blimps on the charts as any other market but it will find it true price under technicals and economics of the market.
China vs US
While the US spends trillions in an effort to thwart the bear market and to cajole consumers to spend more, China spends its money on infrastructure and buying up assets.
Yesterday in the Financial Times, read that PetroChina paid C$1.9bn. for a stake in Canadian oil sands projects. PetroChina will acquire a 60% stake in two oil sands companies. Previously, China Investment Corporation paid C$1.7 bn. for a 17% interest in Tech Resources, the Vancouver based metals producer that has a minority interest in the Ford Hills oil sands project. China is going heavily into Canadian oil sands.
Yesterday in NY Times the headline, "China Tightens Grip On Rare Minerals. Hong Kong: China is set to tighten its hammerlock on the market for some of the world's most obscure and valuable minerals. China currently accounts for 93% of production of so-called rare-earth elements. . . China has the supply for its own technological and economic needs, and will force more manufacturers to make their wares in China in order to have access to the needed minerals."
It's not difficult to read the Chinese strategy. China has $1.8 trillion in dollar denominated securities that they're worried about. So why not use them? It all fits in with China's aim to sew up as much of the world's assets as possible, always with the "excuse" that they want these assets for their future needs.
China clearly aims to be the next world's super-power, leading the world in wealth, gold, technology, manufacturing, exports and possibly in military strength. Meanwhile, America, run by a bunch of shortsighted teenagers, sleeps.
Yesterday in the Financial Times, read that PetroChina paid C$1.9bn. for a stake in Canadian oil sands projects. PetroChina will acquire a 60% stake in two oil sands companies. Previously, China Investment Corporation paid C$1.7 bn. for a 17% interest in Tech Resources, the Vancouver based metals producer that has a minority interest in the Ford Hills oil sands project. China is going heavily into Canadian oil sands.
Yesterday in NY Times the headline, "China Tightens Grip On Rare Minerals. Hong Kong: China is set to tighten its hammerlock on the market for some of the world's most obscure and valuable minerals. China currently accounts for 93% of production of so-called rare-earth elements. . . China has the supply for its own technological and economic needs, and will force more manufacturers to make their wares in China in order to have access to the needed minerals."
It's not difficult to read the Chinese strategy. China has $1.8 trillion in dollar denominated securities that they're worried about. So why not use them? It all fits in with China's aim to sew up as much of the world's assets as possible, always with the "excuse" that they want these assets for their future needs.
China clearly aims to be the next world's super-power, leading the world in wealth, gold, technology, manufacturing, exports and possibly in military strength. Meanwhile, America, run by a bunch of shortsighted teenagers, sleeps.
SHORT -AAPL
Yes my most hated traded stock. Giving it here as a short and yes I did say I will never but I guess they say you should never say never.
SHORT AAPL $166.50
SHORT AAPL $166.50
Gold Bugs
Gold bugs out there should be happy about the movement in that commodity today. It has been consolidating for a long time and is due to break soon. Looks higher
Volume
Doing some homework here on yesterday's action I noticed the volume was almost 50% higher than the average for August on a daily basis.
Very bearish action indeed
Very bearish action indeed
Yesterday Action
Yesterday's action was very bearish as they sold them hard. Volume on the downside was 90% and the VIX rose by 12+% enforcing the bearish sentiment. We need to break 990 for the structure to be clean but we should at least get a little re bound today no matter how small it could be.
The next level below is definitely 975 which is where the B completed and the bulls will definitely try and defend this to the last. Bears don't want us to revisit 1028 area, but I dont see anything positive in this structure.
As I have been singing since the bottom, the top should be around 1045/1054 area and we visited 1040, so that might be enough to satisfy the structure off the bottom. Do we go straight back down? Nope but you need to be bearish here or if you long start getting flat.
The next level below is definitely 975 which is where the B completed and the bulls will definitely try and defend this to the last. Bears don't want us to revisit 1028 area, but I dont see anything positive in this structure.
As I have been singing since the bottom, the top should be around 1045/1054 area and we visited 1040, so that might be enough to satisfy the structure off the bottom. Do we go straight back down? Nope but you need to be bearish here or if you long start getting flat.
Subscribe to:
Posts (Atom)
