Firecracker! Did someone light the fuse so the global economy could blow up again? Bullish dreams for oil exploded in a spectacular array of global economic worries. Forget about Hurricane Alex for the moment because the oil complex sure has. It is time to start worrying about the Euro zone, China, the end of the quarter and whether or not you can get reservations at the beach for the 4th of July fireworks. All of these issues played into yesterday massive stock market selloff. Traders worried about protecting any profits they may have and a terrible drop in consumer confidence sent the market on huge downward spiral. This raised fears of rising oil demand destruction and left traders to wonder what could governments do to stop the move and all was bleak as traders sold just about everything and went home early.
Yet good news today out of Europe and the fact that yesterday's selling was more than likely overdone is bringing the market back. The euro is a major reason why oil prices go up or down and it was under pressure in recent days as the market feared a liquidity squeeze in Europe due to the thought that the European Central Bank was going to have to lend banks more money. But it appears the banks took less money than thought. The ECB loaned banks 131.9 billion Euros (($161.4 billion) at its 3 month lending auction which was less than expecting giving a boost to the Euro and a boost in the price of oil.
Despite the demand destruction fears that permeated the marketplace the American Petroleum Institute showed some signs of life. The API reported one whopper of a crude oil draw to the tune of 3.4 million barrels. And 1.9 million of those precious barrels came from the most sensitive WTI area in Cushing, Oklahoma. Gasoline supplies ahead of the holiday fell 908,000 barrels and yet a massive 4 million barrel build in distillates though may have tempered some of the bullishness on the demand side.
In this time of financial regulation and assault on the free market place, I think it I important to remember the ideals that has made this country great. This is the land of opportunity with the inherent belief that when people are left to their own devices and industry, greater things than have ever been imagined have been achieved to benefit all of mankind. As the great financial crisis began to unwind governments around the globe tried to deny any responsibility and tried to blame just about everything and anybody else. During this time, financial speculation and speculators have been unfairly maligned. Those that have done so have failed to acknowledge or grasp the fact that speculators and speculation really helped save us from a much worse fate. Speculators and the free markets have forced governments and banks to acknowledge the real damage done by their financially irresponsible ways and overspending and over taxation. If it were not for speculators many of them could have hidden their errors creating even more pain to the global community. It is in this spirit and in the spirit of the greatness of America that I bring back by popular demand the Speculation of Independence.
When in the course of human trading events, it becomes necessary for one market to dissolve the fundamental bonds which have connected them with another, and to assume among the powers of the market, the separate and equal station to which the laws of supply and demand and of nature's God entitle them, with a decent respect to the opinions of the buyers and the sellers requires that they should declare the causes which impel them to admit that we have a fair price for oil. We hold these truths to be self-evident, that all traders are created equal, that they are endowed by their Creator with certain unalienable rights that among these are life, liberty and the pursuit of profits. That to secure these rights markets are instituted among men and women deriving their just powers from the consent of the hedgers and the speculators. That whenever any form of long or short position becomes destructive to these ends, it is the right of the position holders to alter or to abolish said position and buy or sell it, and to institute a new position, laying its foundation on such principles and organizing its portfolio in such form, as to them shall seem most likely to affect their safety and happiness.
Free Markets For Free People! Enjoy Your Independence! Don't let the government take that away! Have a Happy and safe 4th of July celebration that would make our founders proud! Make sure you are signed up for my daily trade levels and make sure you are sighed up of todays Webinar. Just call me at 800-935-6487 or email me email@example.com Also remember that Uncle Sam wants you to check me out today on the Fox Business Network. If you don't get it it is you constitutional right to call your cable operator and demand it! In fact it is almost your patriotic duty for heaven sakes!
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