May 23, 2008 Sigma Bands

May 22, 2008 Sigma Bands

Will Crude Oil Ever Stop Rising??

Last week President Bush met with the Saudi Arabian King to discuss increasing Saudi oil output. The King refused and President Bush was handed his hat while leaving the Kingdom. Today Crude Oil prices rose another four Dollars to close over $133 a barrel. So much for the influence of the House of Bush on the House of Saud.

I have included below a Sigma Band chart for Crude Oil. As we can see from the chart it is quite possible for Crude Oil to continue up somemore. Currently, for Crude to reach a +3 Sigma level Crude could go to $137. But the worst part is the momentum does not appear to be weakening. I believe Crude's momentum will weaken before we start to see Crude Oil start to top out. So I'll monitor Crude Oil daily. When momentum starts to weaken I'll let you know.

In the mean time be very careful. The higher Crude goes the more working people will be added to the list of those who cannot pay their bills. I believe that the day will come when Crude prices could be so high the US economy will snap like a twig. As it is the economy is being strangled by high Oil prices. The question is: "What will be the breaking point?"

May 21, 2008 Sigma Bands

So, are we having fun yet???

Well, today the Wholesale Price Index came out and not surprisingingly, it was not good.

First, the index itself was only up .2% for the month of April. .2% only? One needs to start raising questions about how the US Labor Department computes this number. According to the Labor Department the index appears to be fairly stable. And yet, consumers are paying higher and higher prices FOR THE THINGS THEY NEED!!! So what does the index include? Clearly, if the index is that stable then it is probably because it includes items that are not going up. In fact, the index probably includes irrevelant items that may even be going down. This way the index includes items that offset the price increases that we do need and behold(!) the index appears more stable when, in reality, it is not.

But, this past month, the core rate was up .4%! The core rate is the index without the "volatile" food and energy items. For this to go up is really bad news and the market took it as such. If the core rate is up .4% then it indicates that price increases may be spreading to the non-food and non-energy areas. In other words, inflation is spreading across the board.

So, are we having fun yet. Are we enjoying the higher prices for fuel to go to work? Are we enjoying paying higher and higher prices for the food we eat. Are we enjoying the higher prices for health care insurance, car insurance and house insurance. Everything is going up except our paychecks. Having fun yet?

May 20, 2008 Sigma Bands

May 19,2008 Sigma Bands