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Will the Dollar Oil Price Fall, Taking Gold With It?

Thu, 05/05/2011 - 7:50am -- editor
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[[wysiwyg_imageupload:2236:]]By Julian D. W. Phillips

U.S. demand for gas at the pump is starting to react to the rising prices. No wonder. U.S. consumers are seeing a 30% jump in oil prices over the past few months. U.S. motor fuel prices have become a heated political issue after pushing towards $4 a gallon. Gasoline futures hit 33-month highs on Tuesday. The rising prices at the pump are fueling voter discontent with Obama's leadership and could harm his re-election chances in 2012. Government is saying it is due to speculation. But Saudi Arabia has cut production by 600,000 barrels a day. Is Saudi Arabia to blame? Why would oil producers cut production like this when the oil price is so high? We have to ask ourselves, "Is that all there is to this story or is there something out there that justifies cuts in production and accepts higher oil prices?" There is and this article will highlight that.

Another sign QE2 is undermining the economic recovery

Mon, 05/02/2011 - 9:56pm -- editor

[[wysiwyg_imageupload:2228:]]By Clif Droke

A rather eye-opening headline appearing in the financial press is worth discussing here because it’s symptomatic of a bigger problem plaguing the economy.  This problem will only increase in the coming months and there’s ample reason for believing it will eventually undermine the cyclical bull market in stocks.  The headline reads, “Kimberly-Clark to hike prices after profit falls.”

The politics and economics of a falling dollar

Andy's picture
Mon, 04/25/2011 - 9:34am -- Andy

Part of the job description of the Treasury secretary is to declare at every opportunity that it is in the interest of the United States to maintain a strong dollar and preserve the dollar as the world’s reserve currency. To do otherwise would risk triggering a run on the dollar and a tidal wave of political denunciation.

Equities Don't Follow the Dollar Index So Hold On!

Mon, 04/18/2011 - 9:18pm -- editor
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[[wysiwyg_imageupload:2170:]]By Chris Vermeulen

So far in 2011 the equities market has made some sizable whip saw type moves that even veteran traders have had difficulty being on the right side of the price action. The year started out with equities being very overbought and extended making is virtually impossible for a low risk trader to buy on pullbacks. This was primarily due to the fact that there were no real pullbacks other than for a day or two which was immediately followed by prices continuing to grind higher.

In March, we finally had the pullback everyone was waiting for which we caught 4% of the sell off using an inverse ETF. Then we saw the bottom a few days later and caught a 3% gain from near the lows during a rally higher. So as you can see there have been three trends in the SP500 so far this year and we are about to see another sizable move unfold in the coming week.


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