It looks like if we can break DJI 9950 we are on are way to testing the May 25 intraday lows. Do you think there is enough time for this to happen today, and what’s your strategy going into the weekend and for next week if we do?
How much do you think we can expect shaved off our country GDP because of the oil leak in the future (not to far future)? No one is taking about this yet, but I see it coming. With everything else going on the oil will surely throw us into double dip or maybe, here is a thought. Our government comes out with some sort of stimulus to pull us out of double dip then we go into a triple dip. Bulls and bears we are all a like, we like to try to look into the future and predict it’s out come.
The spill affects psychology. From the mechanical viewpoint of most economists the spill should reduce supply and thus boost oil prices. What happens is counter-intuitive. The spill is reducing oil prices because of the depressive effect on U.S. psychology. This effect reduces GDP growth and makes business and consumers more conservative. Top Kill boosted oil prices until it turned bust, now prices are coming back down. I don't know oil from shmoil but psychology stands out. We broke the SPX support so I'll stay short over the weekend.
I was thinking what kind of effect it will have on GDP in respect to how it will effect businesses along the coasts, tourism and property values. But I can see your point about sociology also when it comes to prices of gas.
The people on the gulf are battling depression. The rest of the country is unsettled because the situation is beyond control. Theoretically gas prices should be skyrocketing but they aren't. It's not the government's doing. Why aren't the talking heads expressing their confusion? The machine is working backwards and we can't explain it. If they said that then why would we tune into their shows to catch the "experts"? I posted a gasoline chart in the Weekly.
Steve
ReplyDeleteIt looks like if we can break DJI 9950 we are on are way to testing the May 25 intraday lows. Do you think there is enough time for this to happen today, and what’s your strategy going into the weekend and for next week if we do?
Steve
ReplyDeleteHow much do you think we can expect shaved off our country GDP because of the oil leak in the future (not to far future)? No one is taking about this yet, but I see it coming. With everything else going on the oil will surely throw us into double dip or maybe, here is a thought. Our government comes out with some sort of stimulus to pull us out of double dip then we go into a triple dip. Bulls and bears we are all a like, we like to try to look into the future and predict it’s out come.
The spill affects psychology. From the mechanical viewpoint of most economists the spill should reduce supply and thus boost oil prices. What happens is counter-intuitive. The spill is reducing oil prices because of the depressive effect on U.S. psychology. This effect reduces GDP growth and makes business and consumers more conservative. Top Kill boosted oil prices until it turned bust, now prices are coming back down. I don't know oil from shmoil but psychology stands out. We broke the SPX support so I'll stay short over the weekend.
ReplyDeleteSteve
ReplyDeleteI was thinking what kind of effect it will have on GDP in respect to how it will effect businesses along the coasts, tourism and property values. But I can see your point about sociology also when it comes to prices of gas.
The people on the gulf are battling depression. The rest of the country is unsettled because the situation is beyond control. Theoretically gas prices should be skyrocketing but they aren't. It's not the government's doing. Why aren't the talking heads expressing their confusion? The machine is working backwards and we can't explain it. If they said that then why would we tune into their shows to catch the "experts"? I posted a gasoline chart in the Weekly.
ReplyDelete