Oil is Going to Fall

I think oil is going to fall. Hard. It may not happen for some time, but it will. We have successfully created a new bubble. And we don't even follow the bubble we've created. Most of us are upset about the price of gas at the service station, not even understanding where the real cost of gas is affecting the markets. A good part of me believes $100 a barrel could occur and shock our populace, letting us right back to the Ford F150's and Hummers, and forgetting the issues.

Traders yesterday wrote endless with a simple sentiment: "I am frozen like a deer in the headlights waiting". "I can read the charts and more downside could easily occur, what will happen then?" "It's the first time I've lost in months, these past two weeks, and I"m embarrassed by what I've done".

Saudi increased oil production, Bunge (BG) bought CORN, normally enough news to trigger an upside after a fall, but by midday nothing had occurred. Truly a market frozen in fear. What may be good news is that the market did not fall again, but held.

Sorry, but trades are hard in times like these....when the market doesn't move nothing happens. Follow our open signals, noting again a higher risk to the vastly overextended downside.

On the Floyd ranting front, an interesting email from our Christian subscriber quoted several weeks ago that I find quite valuable, as it helps point out that my stock market teaching is around Floyd Facts, just as is my analysis of politics. I do not want any of us to be misled by false facts as this very important election comes up. From MP:

"Hey Floyd,

First of all, I would like to thank you again for bestowing upon me the privilege of becoming a member of Blue Chip Options. My family and I have already been blessed by OEX options and I know that it will only continue through Blue Chips. I am going to demonstrate my gratitude by continuing my in depth study of your materials, recommended books, as well as my daily paper trading (do you recommend 3 months of paper trading with Blue Chips as well?)."

Floyd-always try to paper trade at least 90 days.

Second of all, I want you to know that I recognize your working knowledge of the economy and politics is far superior to mine and I'm really open to learning the "truth." Listen Floyd, I am not tied to any one political party. I am tied to Jesus. If someone else comes along with a better plan to run our country, then I don't care what party they stand for. I want the best person to run this country. The only thing I cannot compromise on is a world view. It's hard for to separate "church and state" like you keep stressing because I don't know how it can be done "safely." Maybe over the course of time, you will be able to show me how.

Floyd-our Constitution was written brilliantly, and intelligently separates religion from politics. I respect all points of view, and all people. I believe a good world order is to allow logical behavior in all, and not force morals or religious points of views on others.

I believe the Bible is the inspired word of God and if a political leader is not using the Bible as a standard for their decisions, then it is very difficult for me to support them. Unfortunately, I admit that because of my naive ignorance, I've been assuming that Republicans have a Biblical World view while Democrats do not. I am learning through you that this is not only an unfair assumption, but it is simply not true. Now if George Bush, or anyone else for that matter, is lying to me and the public in order to get elected, then they are at fault and they will be judged accordingly. At the same time, it is my responsibility to become a good steward and recognize when a political leader is abusing their power and deceiving myself and my family. Therefore, I am listening intently to what you are saying regarding politics and the economy and I trust that you are well informed and giving all of us unbiased information.

Floyd-what is most interesting here is that Republicans and Democrats both most likely have a "Biblical" point of view.

The extreme right or left wing (conservative or liberal) that force their views on others are those that create the FEAR and judgmental behavior.

You are a good man Floyd with a great heart to help people. OEX options and Blue Chips is not just a signal service, or a teaching service for that matter. You practically have a ministry over there because of how much you help people.

I hope you can sense my deep desire to become well informed of our political and economic system. I also hope you realize that I am trying my best to take off my "stained lenses" so I can see what is truly going on.

Real facts are: unemployment is 12%, not 5%. The USD has lost great value, and we must understand why. Our nation has the highest deficit in its history. The war in Iraq has been costly in money, and lives, and scholars don't even agree on why and what we are fighting for.

These are facts.


May you realize how much I appreciate our relationship.

I'm listening to you brother. Thanks for your patience.

I hope you experience many blessings this week,

Thanks Floyd,"