The desperate sell down in oil
could be an attempt to save the American tourist/driving season.....or at least let folks get the local Walmart with a few dollars in their pockets.
That this is a good thing.....but it could be based on the FALSE HOPE that the Fed will "go 50 bp" at it's next meeting.
Most of the Euroland and Asia ARE NOT CONSUMING as they should.....this is depressing their economies....and THUS helping the dollar to stabilize, which is really the cause of ALL of the recent problems in commodities.
Of couse the dollar has major structural problems that are mostly ignored until the monthly deficit figures are released...and then the dollar sells off again.
IN SHORT THIS IS A VERY SHORT TERM MARKET.....MORE OR LESS DRIVEN BY THE "NEWS OF THE DAY."
IS OIL UP? OR IS OIL DOWN? STILL THE TRADING RANGES ARE WELL ESTABLISHED....AND WITHOUT REAL CHANGES IN THE UNDERLYING STURCTURAL PROBLEMS NO LASTING EPIPHANIES CAN OCCUR.
