Bears' Week...
The Dow ditched by 4.19% or 496.18 points this week alone making a retreat of over 13% since this retreat started back in May. This is also the week which the critical March Low support level got mercilessly murdered. All these happened as oil ended its neutral trading range to breakout to topside. Oil doesn't seem close to getting defeated despite efforts taken by the US and the rest of the world. Strangely, every announcement of production boost or corrective action seemed to be counter balanced by an attack on a critical oil field somewhere... is there really coincidents in this world? I don't think so. Nothing is ever coincidental. Whatever and whoever are behind all these doesn't think the game is nearly satisfactory yet. Even more dismal are the funds pouring in after the high oil prices. People who are laughing their ways to the bank as the rest of the world moans in agony. If there is nothing more in the lives of these people then money making, then I fear the end of mankind may be near.
posted by Jason Ng at 7:14 PM
3 Comments:
These days are very critical days. People must act very carefully. Think twice before you bid. Read the articles at this blog daily. Jason has big experience in Forex.
Regards
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Jason, there is no "oil" conspiracy. Oil prices are just reflecting collapse of value of USDollar.
2 things.
1. I never said there is a conspiracy but it doesn't take a conspiracy for people to laugh their way to the bank on high oil... it only takes greed.
2. Oil is a commodity and being a commodity, it is affected not only by the currency it is traded on but on supply and demand as well as speculation. When excessive speculation creates a chasm between reality and expectation, prices must correct no matter what the underlying currency is doing. That is why we saw oil come down for the most part of 2006 while the US dollar was weakening in the same period. If oil is merely a reflection of a weakening dollar, how did what happened in 2006 happen?
Remember, you live in a real world, not a made up textbook world. Things happen and prices move due to more things than any economists can model.
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