I covered this in the newsletter, but this just jumped out at me today.
Tuesday, July 18, 2006
Here is a quote board showing Crude Oil (CL-067) and Stocks (SP-067). As you can see both of these markets are declining quickly together. This is from the mid morning of today. This is just another example of how Crude price moves do not cause the opposite moves in stocks. The pundits would have you believe this type of drop in Oil would cause a stock rally. It certainly does not seem to be here does it?
I covered this in the newsletter, but this just jumped out at me today.
I covered this in the newsletter, but this just jumped out at me today.
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I've been reading about peak oil, and the permanent supply/demand imbalance, and that therefore oil will go to $100/barrel, maybe $200 in the next few years. Dr. Stephen Leeb, in his book The Coming Economic Crisis, says that neither the government, media, nor Wall Street is planning for this, and that the markets are pricing the oil stocks as if oil will revert to $50 or $60/barrel. Chris, what are your comments on oil, and why the markets are undervaluing oil companies?
I do think Oil is in an uptrend that will continue. The target prices are anyone's guess. We have to be aware when a fundamental change has occurred and I think it has here.
Wall street has always undervalued these companies. Historically, their margins have been fairly low. I am not sure about who is or is not planning for it. I think if it happens slowly like it is now it may not have a huge effect, but if we get into a major ramp up from here, all bets are off.
I am watching the COT report and OIL to look for a buy spot, but nothing has set up recently.
I do not expect to see a huge selloff in Oil anytime soon.
I asked Bill Fleck about $200 oil, and he said he doesn't believe it can happen unless the dollar vaporizes.
" I have no desire to put any money up on the idea."
This just proves that Wall Street is completely clueless!
$200 Oil seems a bit of a stretch. Over time with my newsletter I will expose to you one topic after another that proves these talking heads on Wall Street feed the public a bunch of BS.
They are there to sell you something for commissions, just keep that in mind. Itleast with me, I have my own money at stake in the trades in my service unlike any of these Wall Street people.
When they go wrong, I lose more than any client does. These wall street guys could care less, as they do not have their own money in what they push.
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