OIL action today and the Plunge Protection Team failure...

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Oil on Friday

This from the GE site, (noula) Jan 21, 15:14 I don't take too much stock in the price action for crude and distillates today. It is Friday, the only day of the week when the PPT has the market to itself without foreign influence. Ever notice that the greatest stock mkt melt ups take palce of Friday? The TBonds always find a bid on Friday? The $US is always strong on Friday?

The oil/distillate futures markets are trading at substantial discounts to the spot markets. The trading world doesn't believe this move in crude is real. Even if they believe, it is thought to be temporary. Oil production and oil service companies still have yet to move up in a big way. Just let the spot markets keep or extend their gains and maybe, just maybe the futures markets will start to believe the up move is real and start to price these products on a cash and carry basis.

The stockpiles of real commodities are servely depleted and the economy's ability to replace this shortfalls is impared. As a society, we have not paid enough attention to our productive infrastructure now for 20 years. Inflation will rage for years.

BTW, March crude closed up $0.21 to $28.18. The PPT is having a tough time getting the job done. Gold's day is at hand. Turn your monitor off and quit driving yourself crazy! Our time has arrived folks!

WOW-wow!! What a nasty little skirmish that was-

(richard640) Jan 21, 15:13

It looks like the surrogates of the Fed and the Treasury came into the petro market the last hour and tried to break the mkt. They chose a great day-if crude had actually closed down a lot it would have been a sigificant negative technical development. It still may be but I am heartened. It looks like real demand was discovered on this pull back- The smart money that came in and bought did NOT want to wait to see if there would be downside follow through on Monday when they could get it cheaper-[that includes me :o), Andy] we may still be in for a sizeable correction but there may be a chance we will just continue up. That's how I see it-no guarantees. March crude-close-28.18-up 21-high-29.10-low-27.70=====March unleaded-close-76.50--high-79.50-low-75.70-an awesome range-I'm not a T.A.-any of you T.A. guys got a take on the action

-- Andy (2000EOD@prodigy.net), January 21, 2000


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