Chance to Make $ on Black Gold...L&C

The media business will get its biggest boost from an election year ever, but a safer, surer bet to make some bread. is on oil. At the moment oil is range bound traded with upper resistance at $100 a barrel and the low end touching $78 per barrel. When trading, it is important to understand the trend of the market. It too is range bound. As this hits the blog-line, the market is touching its highs from April of this year. I'm calling it a top. I see a severe market correction beginning the 3rd of August. I know, I know. This is a Presidential Year Cycle. I heard it. I heard it. The US is growing, although slowly, nevertheless, growing with still positive earnings from its corporations. Ever hear of the
Bradley Model?
It is pointing DOWN! I do not have a PHD after my name and the only place you will read me is here, but I don't mix words. I put it down in plane language. The market will definitely touch 950 on the S&P which means everything will come down in price to which if you have anything left, buy some oil at that point.
Bakken Oil
is the place where I would place my bet. You have many small companies with low P/E ratio with big acreage and a product that is in demand. You could parlay this opportunity with the future alternative fuel for cars, Compressed Natural Gas(CNG). I could post a few names, but after the Synacor disaster, I'm a little gun shy. You can easily do a Google search to find names with these ideas.
Support
comes from many sources, including OPEC. Saudi Arabia, according to Dr.Ken Moors, an energy consultant, needs oil to be priced at $125 a barrel to make ends meet. You see, the Arabs count on the revenues to pay for all the services that they provide, least they begin to suffer from the Arab Spring contagion. So, when the Fed prints money and the value of the dollar goes south, the Arabs need more dinero for their petro.
The Russians also support higher prices, but for different reasons. It seems that corporations cannot deal with Russia, because Russians are paranoid. They make deals, but as soon as they begin to pay off, the Russians begin second guessing the original contract. They always feel that they are being cheated. Putin, step back! Look at the recent history of your nation. You guys fail at every deal you make. Do you know what the result of all this will be? No one will deal with you and you will be isolated again. Poor again! I could point out deals with Chevron, Exxon and the most recent blowup with BP. Wake Up! If you are making money, then you should be progressing as a nation. If you fail to honor contracts, it is all on you, period!
China and India both have over one billion people. They need everything. China just brought a Canadian company, Nexen. In the future countries will put a limit on takeovers by outside interest. It is already happening in South America with mining companies. Sovereign wealth funds add to this mix and together with limited resources, makes for higher prices. Bottom line: oil is not going anywhere until there is another practical energy source like CNG to take its place. In the meantime you can at least get a rebate from all the higher prices that you will be paying at the pump.
LIARS and CROOKS:The Fed, ECB, the UK Central Bank, central banks of the BRIC nations and elsewhere who only see growth by printing money and forcing it into the system, irregardless of the consequences. We will all suffer from their limited, anti-gold, fiat thinking ways. End the Fed!