Hedge Fund Liquidation Continues and….with UPDATE
Oil prices are not and rarely are about supply/demand.Â Why do we say that, the latest example of a controlled market is that OPEC production cuts are not pushing oil prices higher because the producers don’t want them higher right now, just want to keep the news flow going.
On the hedge fund issue , Materials prices continue to decline on the liquidation movement.Â The Financials and Lehman talk are just that, old issues that are being resolved by the market.Â The election cycle in our mind is still the elephant in the room and that points to a re-connection of theÂ rally to 1373 on the S&P 500 over the next 25 days.
7:36 AM CDT
UPDATE at 10:57 AM
The Dollar and gold moves that we forecast quite some time ago, don’t have time to check when it was, have hit their first objectives, gold in the 750’s and the dollar index at 80. We are dipping our toe lightly in the water, buying some gold today.Â These government rescue packages are adding enough loose money to provide a bounce in gold.