THE BLACK GOLD WATCHER’S COMMENTARY FOR FEBRUARY 8, 2006.
ANALYSIS OF BLACK GOLD!
Crude oil is meeting more selling, as more traders notice the lack of momentum to the upside. Today’s close (2/08/2006)
was very weak, short term. The locals took the opportunity to "hunt stops", forcing more of the weak longs out of the market!
The "stop hunting" was effective, as it revealed the lack of commercial support. The failure of the commercials to snap
up the "bargains" has altered the immediate outlook for Crude Oil.
The futures market has performed its function as the instrument for price discovery perfectly by signaling the continuing
weakness of Crude Oil.
Subscribers to THE BLACK GOLD WATCHER (copyright 2006) have already been issued the appropriate instructions to capitalize on this change.
Crude Oil markets are always full of drama. This week’s show was no exception.
We heard/saw President Bush tell Americans that they must end their dependence on foreign oil. Exxon/Mobil immediately
responded with the reality that it’s not possible.
More rhetoric about oil supplies being shut off by Venezuela and Iran. Blah, Blah,Blah.
They ain’t gonna cut off the oil, folks. Why not? Because they want money! They aren’t going to give it away
for the same reason. This inflation scam is going on everywhere, so a billion dollars doesn’t buy much any more.
Forget about Peak Oil! Price clears the market. The Soccer Moms will park their Mall Assault Vehicles (MAVs) as soon as
the fuel cost cuts into their weekly nail manicures. So bet on the money, and forget about the BS.
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