RE: RE: RE: RE: RE: Chart + Chit chat..bonjov Yes the volume is rather high for so early in the day. The markets are rallying on EU news. And if the jobs report is positive tomorrow they'll rally further. However, if the jobs report is bad tomorrow, they could still rally because a bad jobs report tomorrow will further fuel next week for the Fed to spark QE3..... however, a positive jobs report tomorrow could derail that. I believe we are going to see many of these days where it's up 200pts and down 200pts etc. But it sounds like the EU finally has the beginning of a true and solid plan, so that's going to be good for the markets etc.
However WTI is getting awefully close to $100. There's a love/hate here. The love is that many Oil stocks begin to rise. The hate is that it sparks inflation across the board. Also, many commodities are rising right now because of speculation QE3 is coming and the bond program the EU is entering. These projects devalue currencies which immediately rise commodity prices. This is nice in the short term if we are holding a winning position........... BUT - too high of commodity prices reflect supply/demand and if demand starts to dwindle, the whole thing unravels and we're back to square one. So be careful, don't get caught up in the Euphoria. Buy on down days, sell into up days. I don't hold this stock, I've been trying to get it at a price I want, which hasn't been happening as of yet. I may just miss the opportunity.... I can't buy in today with such high volumes already..... too much potential for that volume to exit right around the corner. I don't trust WTI at these prices because baked into them is: 1) speculation on Fed action when no action has occurred yet; 2) weather premiums from hurricane season
Well - all we need is an inventory report that doesn't support #1 and #2 and WTI crashes back down to $85 and drags the energy sector down with it..... speculation speculation speculation is what makes markets as much like a video game. Speculation will push prices too far as investors invest in euphoria. Fundamentals then reset true values.
So enjoy the ride and keep one eye open.