Another dismal oil inventory and despite a better than expected ADP jobs report, the bulk of the news has been bad or worse. Oh sure the Dow recovered on an oversold bounce due in part to some who believe that maybe somehow, someway this granddaddy of all jobs reports tomorrow might not be that bad. Of course the numbers from the oil patch are not giving credence to such optimism as demand seems to be on a downward spiral. As the Department of Energy reported demand for oil products was at a miserable 18.9 million barrels per day falling 2.0 percent below a year ago. Gasoline product demand averaged 9.1 million barrels down by 3.6 percent from year. Distillate fuel product did average 3.5 million barrels per day over the last four weeks, up by 1.7 percent from the same period last year but was not enough to shake off the bearish demand mood. Before long deflationary pressures may begin to build unless we see a miraculous turnaround, and the odds of quantitative easing go up dramatically. Yet the question is: can the Fed help stop the red.

QE2 did stop the red in the stock and commodity complex and helped the banks shore up their balance sheets yet as far as pumping money into the real economy the impact was disappointing. Banks failed to lend money and basically made millions by playing the carry trade and the money never went to the real economy where the Fed hoped it would go. You can't really blame the banks due to extreme regulations and a Washington administration that was hampering business, creating more uncertainty with a disastrous healthcare law and causing uncertainty in business like this country has never known. The Fed had to do the heavy lifting as Washington believed that capitalism was the problem as opposed to the answer to the problem. Washington's politicians and their inability to shoulder not even one iota of responsibility for our economic collapse means they will never our nation's biggest problem. Arrogance in Washington and massive sized heads. Instead of eating humble pie they decided to meet arrogance with more arrogance.

Power up! Make Sure you are getting the "Power to Prosper" by demanding the Fox Business Network where you can see me every day! Also get your free trial to my daily trade levels where I cover most of the major commodity markets, not to mention selected option and spread trades. Make sure you call 800-935-6487 or email me at pflynn@pfgbest.com to get your trial and to open your account. You can also sign onto my Facebook Page!! With more info and maybe even some powerful facts!

There is a substantial risk of loss in trading futures and options.Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.