$115 - $120 Oil?...bah, who cares!

Discussion in 'Trading' started by DeepFried, Apr 24, 2008.

  1. Declining retail sales, housing still screwed, energy and food commodities skyrocketing - I know the market anticipates future conditions but don't the glasses seem a little extra rosy right now?

    We bought a lot more Macs and stuff from Amazon. So everyone's staying home and on the internet. Does that mean the rest of the economy doesn't matter? Housing in the cellar - ha, so what, Mariah Carey had a lot of Amazon downloads!

    From a short perspective, probably the creepiest thing about this stock market is the way we dinged $120 on oil and we rally anyway. If we get short capitulation here in the next few days, we could blow through resistance and get a monster rally.

    Plenty of mutual funds and pension funds are sitting on huge amounts of cash after selling stock for the last six months and they exist to hold long stock. That's what they do. They sure as hell aren't in business to short stocks. If they start leaning on this thing to the upside that will push things a lot higher.
  2. Bowgett


    How do you say you have no clue where oil price is going to go:

    So S&P says oil will be somewhere between $41 and $141. lol. Nice job :D
  3. We're still in a bull market that began on October 2002,which is why the market keeps going up. The spooz has yet to close below 1252.

    Rising commodities, rising food, rising gasprices, falling dollar isn't a big deal, but is actually bullish for multinationals and many sectors.

    Amazon.com google are doing well because web 2.0 is not a bubble and the new era is here.
  4. :D You would think S&P would be embarassed to issue such an absurd "prediction." As if they weren't looking bad enough already after the subprime/bond insurance mess.
  5. Thats hysterical. Nice tight market, I'll be 1000 up on it!
  6. Coolio


    It's a fact the energy required to make $1 of GDP is lower than ever. Back in 1980 high gasoline prices killed us, nowadays, we're not relying on as much fuel to produce GDP.

    People adjust, make fewer trips, my work place is talking about going 4 on 3 off work schedule, etc, etc, etc.

    As a % of their income food, clothing and energy are at all time lows compared to the 1950s.

    $5.00 gasoline might just save us by spawning innovation, driving efficiencies and getting people out of their 14 mpg $30,000 SUVs.