You really have to be kidding me. After that slate of news this morning, you have the gall to bid up stocks and crude oil?
Angela Merkel came out and stated point blank “no fire hose.” Angela Merkel was the biggest cheerleader for “the fire hose.” Yet you bid up equities and commodities happily as an entire continent burns.
Do you want to know what this all means? It means holders of EU based debt are in serious trouble. It means the billions of dollars being held in Greek debt (not to mention Italy and Spain and the likes of them) are circumspect. It means a lot of money is about to go static.
The U.S. dollar should be ramping here, because Europeans are going to need dollars very soon. They will need dollars to escape their problems. They will need dollars to escape their union.
And it’s not like we’ve had a spate of incredible news coming out of the economy. Manufacturing information from the Empire State was abysmal for the ump-teenth month in a row. Information is displaying yet further drawdowns in our economic output. Reported layoffs are coming in again. Yet you think now is the time to send oil catapulting to $90 /barrel?
Hell, the principle of oil going for more than $80 a barrel right now is counterproductive all around. If you think the Fed is going to jump in and save the day here with you pushing the country’s life blood to near unaffordable levels, you have another thing coming. The Fed can’t even consider acting with crude oil this resilient to adversity.
They’ll check back in at $70 /barrel oil.
Just remember, Captain Crude, you have no support here. You have zero reasons to buy up oil, yet you continue to do so. Why? You really should consider giving up this trade.
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Short sellers stay put. Don’t take your losses yet. You may come out on top soon. Intermediate outlook really bad. Is that your message.
Pretty much. Or better yet, “quit buying the blood while the arrows are still falling.”
i really think that r-bob needs to stay high. at 2.55 were it was 2 weeks ago just wont do,in the eyes of tax revenue both local and fed.so they pump crude,in keeping the r-bob artificially high. it’s all about”how much” they need every months’ end. just like ticket writing by cops. it’s become quota driven
The oil market is perplexing and why the strenght must have to do with the fleeing of shit paper to hard asset move. That’s my take.
If the rumor is true about the EFSF then Europe’s newest export will be inflation …
Too bad all oil is priced in dollars…
EU inflation does jack shit for crude, unless we reciprocate.
True, but the everything is up after then ESFS news.. Assuming the rumor is true its just more money looking for a home
Yes, I suppose you think the EU dropping that much money is going to reignite the economy, then you could maybe buy oil.
But if the EU is going print crazy, then the dollar is getting stronger, which is sort of a contradiction.
I suppose if*
I was thinking euro bailout = risk on = commodities bid up.
Perhaps, but there’s a reflexive relationship going on there. If the EU’s actions cause it’s citizens to flee their currency (which is exactly what happened here in the U.S.) then the dollar is going to be a big winner. And that could ultimately drag oil lower, in spite of “risk on.”