Thursday, September 18, 2008

The Oil Price Jump is GOOD news

When the oil price dropped as fast as it did, as a trader I recognized that this couldn't hold. That it had to go back up. That we were going to see it fill in the gap it created. I suspect it will go all the way to 115 before it begins to drop again, and that will take a month or more if it's a real drop.

So, relax, this is Adam Smith doing what he does best.

Isn't economics a wonderful thing?

OH, and Ron, I know this is dollar related, it's the same thing. there is a huge sponge absorbing this artificial liquidity, after things settle down the fundamentals in the market will return and the drop to the 80 level will proceed in a more orderly fashion.

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