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Mascoutah, Illinois | I am a firm believer we see January 16 RBOB trade down to the $1.03-$1.06 area.
I believe crude oil puts in a bottom sometime in the early November time frame. What the price will be, who knows?
John from Kansas will eventually be right on the price action in crude, but it will take another two to three months for the money to change direction and take crude higher. Crude oil will continue to grind lower. The demand is there, but we haven't seen enough folks go out of business to put a bottom in. We had the Schlumberger/Cameron deal this morning which helped jump start equities in the oil sector and we will see if this bounce continues. Rig counts have been slashed, but Saudi Arabia along with Iraq are pumping excess crude.
I was listening to a piece by McClellan who is the patriarch of the McClellan Oscillator. His work is telling him we are going to have another huge leg down in the stock market right after the September FOMC Meeting. The S&P500 peaked on May 20th at 2134. I believe it would be extremely healthy for the S&P to trade back down to the 1550-1600 level which was over head resistance in early 2000 and then again in the 07-08 time frame. | |
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Torrington, WY ethanol plant going dark..
