Wednesday, July 8, 2009

Crude Oil Update

Here is an image of today's front page for the New York Times. The headline tells us that Washington's regulators are considering limiting the size of positions taken in crude oil futures by certain "financial" speculators.

This headline goes into my media diary along side the one from two day's ago which I commented on in this post. It is highly unusual for two headlines to appear in the same week, in the same publication, which highlight activity in a commodity market. This one, like Monday's headline, worries about market volatility. Now no one worries about volatility in crude oil when the market is going down. They only worry when it is going up. So these two headlines give the aggressive contrarian reason for thinking that crude oil is headed down to $36 or below over the next few months. It is still a bear market in crude.

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