The Smell of Fear.
He played on our fears. He took America on an ill-conceived spending adventure dangerous to our future, an adventure preordained and planned before the financial crisis ever took place. Ops sorry! I have to give credit where credit is due, that was Al Gore's ranting about President Bush and Iraq. Of course when I hear words like catastrophe and Armageddon I do think President Obama is playing on our fears.
Listen, things are bad and we do need some help but by trying to say that if we don't include 100 million dollars to teach kids about green energy construction that somehow the economic world will come to an end is a pretty far stretch. Heck, the American people are talking about a significant investment here that Senator Harry Reid says could reach a trillion dollar. I think that we should wonder if all of that money is being spent wisely.
What we do know is that government spending alone cannot lift the economy out of its funk. I am concerned that the stimulus's positive effects might be offset by tax increases that are coming in the future. When the Bush tax cuts expire it will be another burden on the struggling economy and will be an issue that may slow the recovery just as it is getting started.
Still oil loves the stimulus talk. Once again oil was brought out of the hole by talk of the stimulus and talk of more OPEC production cuts. Bloomberg News reported that Saudi Aramco, the world's largest state oil company, will reduce crude supplies to Japan in March for a fourth month. That comes as oil supplies are rising and demand falling. David Bird of Dow Jones writes that, Rising inventories are a further blow to OPEC, which is reeling from the fall in global oil demand and prices. Each barrel of oil that goes into storage in consumer countries weakens the cartel's hold on the market and potentially prolongs the price skid. OPEC pledged to cut output by 4.2 million barrels a day in September. Since then, the group has cut production by a total 3.135 million barrels a day, indicating a compliance rate of 75%, a survey by Dow Jones Newswires estimates. Saudi Arabia, the world's biggest oil exporter and OPEC member, cut output below its agreed level of 8.05 million barrels a day in January. Saudi output of 7.9 million barrels a day was the lowest since October 2002. Now, analysts said, the plunge, alongside oil's inability to recover, will require deeper cuts by Saudi Arabia and OPEC to prop up the market. But how much more can they cut they need the money and while cutting production may be supporting prices now, with winter almost over, it is unclear that OPEC can cut enough to stop another oil price market crash.
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We are still short oil and riding down the biggest break in oil history!!! We're short March crude from apprx 4354 on what is a quadruple rollover! Lower stop to 5050.
Sell March heating oil at 14700 - stop 15600.
Sell March RBOB at 13300 - stop 13900.
Sell March natural gas at 500 - stop 540.
The Dan Flynn Corn & Ethanol Report
Good Morning !
The March Corn settled at 377 down 1/4 1/4 cent.
The range was 377 1/4 to 372 1/2.
Still looking for a possible technical brekdown. Fundalmentally, all eyes are on South America.
Energies continue to play a range-bound game. Keeping it's focus on the Stock Market. Asia was lower in the overnight. Let see if the U.S. Market can rally !