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A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Monday, April 20, 2009

Crude oil rollover back to $42?


I believe the previous three posts of the 10 yr, Eur/Dol, and Crude will show the short term direction....

As the Dollar strengthens pressure will be put on Crude, Eur/Dol, & the 10 yr note.

Ask yourself a few questions:

  1. Is a strong dollar GOOD for the overall global economy or just the US?
  2. Why is the dollar getting stronger?
  3. Could other countries be getting weaker by cutting rates such as the ECB?
  4. How will it affect PRICE in the US market short-term/long-term?
  5. If US consumers are strapped for cash and global markets are following the US in economic cycle, what does this say about the strength of the GLOBAL economy?

Point being who is buying? I'm finding it difficult to find customers in any segment anywhere with true motivation to BUY.

The weekly chart of Crude shows the channel lines in play with a lower Fibonacci level at $42.88.

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