Stocks down on oil, bailout worries

Stocks down on oil, bailout worries

money.cnn.com

Oil and gold: Oil prices surged, with U.S. light crude oil for October delivery briefly spiking more than $25 a barrel to hit $130 before pulling back to settle at $120.92, a gain of $16.37. Trading was briefly halted after it first spiked $10 a barrel.

(visit the link for the full news article)

Not looking good, nope not looking good at all!

money.cnn.com
(visit the link for the full news article)

The oil prices are surging because the dollar has reached another all time low.

Also the oil prices will get higher again, is expected to reach before the year is over 140+ a barrel.

This should not be a surprise as the winter time is approaching.

down DOW 11,015.21 -373.23 (-3.28%)
down NASDAQ 2,178.98 -94.92 (-4.17%)
down S&P 500 1,207.12 -47.96 (-3.82%)


This just cancels out the Friday stock gains, now its not looking good.

reply to post by marg6043


Got into a arguement with someone the otherday about how this is all "normal" because yes oil does increase in the winter and yes September has been a historically bad time of the year for stocks! Even if both of these are true and believe me I am not denying that they are what we are experiancing is far from normal!
It is like telling a man who is on the floor with chest pains it must be indigestion! Sure that happens but we are falling way outside of what is typically defined as normal! Today oil posted its biggest gain in one day EVER, not just this year or 10 years EVER!!!! No that is NOT NORMAL

reply to post by marg6043


Indeed, another proof that Oil is the only thing left that backs the dollar.

I wonder if Oil reaches 200$ the whole OPEC will be on euro's or if it's too late and all has fallen.

reply to post by kupoliveson




i herd it explained on TV that the oil spke happened becaus 99.999% of everyone has short positions and they had to buy the longs at any price to protect their long terms shorts.
makes sense to me...as nothing fundamental has happened to oil pumping or delivery or refining capacity.


some might say that the $1.8 Trillion committed to the US financial mess(es) is devaluing the dollar...
i remind youse that it will take several years for all that money out-of-thin-air to affect the value & buying power of the resulting inflated dollar.

no, mostly some are returning to the suppposed burst commodity sector to save their wealth, in the form or oil & precious metals...instead of the financial sector as the bubble heads of MSM tel us to buy-> because these financials are 'such a bargain'.

i love to see these MSM talking heads, eat crow----day after day !

reply to post by St Udio


Hi SU, Here's the Oil Spiked through The Roof Today in World Newser

It said:

Schork says he believes the big jump in June came after a big oil marketing firm had placed a big bet that the price of crude was going to drop. When that didn't come to fruition, the company had to cover their bet by buying a lot of oil contracts, and quickly. Other market players knew this firm had to buy the contracts so they effectively said, "We know you need this now, so pay up."

I looked around and couldn't find who is the "big oil marketing firm" that bought back the shorts. However, normally if you do a short you borrow stock, sell it at a higher price then buy it back at a lower price and return the stock to the owner. Oil was not going up till today. So was the short seller driving up the price himself. Why didn't he wait a day or 2 so the price wasn't driven up so much? Did he know something that we don't?
It will be very interesting to see what oil does in the next few days!