Saturday, July 12, 2008

Gas is Available Everywhere

Some people in the past who knew very little biology were able to use the land without destroying it. We, who know a great deal of biology, are destroying our land in order to use it.

If we had a supply problem with oil, as some suggest, gas stations would be out of gas, and gas would not be plentiful.

I drove through the midwest last week and gas was available everywhere. Floydian facts would then logically articulate that gas is plentiful.

Oil refineries are NOT at capacity in the U.S. There are no plans to build more refineries by any oil companies.

What is the REASON refineries are not being built? Cost? Long term cost (10 years to pay a refinery off)? Or, does refinery production help limit our consumption and lead the price up?

Why is Texas the most profitable state right now?

The Chrysler building was sold to investors from Dubai.

Halliburton has moved their corporate offices to Dubai, United Arab Emirates.

Why is oil speculation on the stock exchange floor hugely volatile, and why are commodity floor traders gaining more wealth in the last 6 months than they have in years?

Why did Hummers have tax credits as "farm vehciles" and become the top selling "truck" in many years?

How long will it take for drilling in Alaska, or Florida, or wherever, actually TAKE to put more oil out in the market, and reduce our independence on the Middle East?

Why is subprime as a disaster economically continuing, despite massive bail outs by the FEDS?

Why is the "stimulus package" of "money back to Americans" not even talked about anymore?

How high is our deficit? Has it increased in the past 8 years? What plans are there to reduce it?

These questions are WHY the market is reacting, and in bear territory. None of them have been answered by the American people.

Yesterday we saw whiplash at its best, with Paulson telling us to revamp the financial markets while we heard that Fannie and Freddie are effectively bankrupt. Dow made a 15 billion deal for Rohm and Haas, that helped lead the market up, only to falter on crude oil moving up during the day.

Many of our trial subscribers, which amuses me, cancel immediately, when they see the extreme volatility of the market.

In a market like this, traders, only the most astute and fast trader will make a buck. Sorry, but it's true.

We saw a market that moved to theoretical Dow highs of 11,310, and Dow lows of 11,046 in one day. Both signals could have been profitable. We'll hold the call through day end today for any traders still holding for upside potential and will move to August issues with Monday's opening.

The July560P was available at below prior day close, and could have sold for tight 1.00 to 2.00 per contract profits yesterday.

I repeat again: only the most astute investor can profit on 250 point moves bi-directionally that occur intraday, with no obvious triggers.

I believe the market is also ripe for upside, and continually tests the same bottoms, and holds.

We'll use the same July call for intraday trades today, and recommend holding NO open position over the weekend.

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