If you wanna know which way gas prices are GOING to move then watch the Dollar's relative strength (weighted against a basket of currency's)
here's a link
quotes.ino.com...
note the current level...it just broke a "support" level (imaginary but used by traders) we had from the early march Lows of (83-83.5) and is
sitting at 82.3...........lots of money may pile into oil as the dollar is predicted to fall to it's next "support" level of 79-80. this would
equal a bump in oil /barrell prices to 70 (approx IMO).....this would sent gas up another 20 cents or so
should the $ break below 79.....all HELL would breakout in gas prices this summer.....i don't think it will fall that far below 79 due to the fact
that when people realize that earnings are still awful.....people's risk appetite will dissapear and flow in cash ( and most cash transcations are in
$) that is why it is considered a safe-haven currency
when the $ goes down ....commodity's priced in $ go UP......
The big secret (although not anymore) is the ability for the FOR EX market to lead the Oil futures prices.....and we all learned LAST YEAR that a
prolonged period of Dollar weakness can send OIL PRICES over 150$ ....the reason i am YELLING is b/c people seemed to forget this recent
history..........with an assist from the local media......who never blames the seemingly unjust way that investors can pile into a trend (i.e dollar
falls.....buy oil/gold) and they can pile in/ speculate UP the price of something we are all dependent on NOT TO MENTION food prices....i.e food
futures trading...
[edit on 12-5-2009 by cpdaman]
[edit on 12-5-2009 by cpdaman]
