BG,
U.S. economy cruising at about 4 percent growth
Crude oil struck a new record, near $71 a barrel Tuesday, while the average national
price for unleaded gasoline hovered at about $2.60 a gallon, up 39 percent from a year earlier.
"Going into the hurricane we had a shortage of refining capacity anyway. This just
throws a hand grenade into the already delicate balance."
NEW YORK (CNN/Money) - The impact of Hurricane Katrina on U.S. oil production and
refinery capabilities may be worse than initial reports estimated and could lead to
a national gas crisis in the short-term, analysts warned Tuesday.
On the otherhand, a comment from Prof.Doug Woodward from the University of South Carolina:
"looking at the economic impact, our research shows that hurricanes tend to become
god-given work projects." Disasters are good for the economy, he said. Within six
months, he expects to see a construction boom and job creation offset the short-term
negatives such as loss of business activity, loss of wealth in the form of housing,
infrastructure, agriculture and tourism revenue in the Gulf Coast states."
WASHINGTON (Reuters) - Most policy-makers at the U.S. Federal Reserve in August
worried that inflation risks had "ticked up" recently, with some fretting that price
increases were already at the upper end of their comfort zone.
At the August meeting the Fed lifted a key interest rate a quarter-percentage point
to 3.5 percent, the
tenth straight quarter-point rise.
Not exactly a surprise.
Dow as dropped below it's 200,50,20 and 10 Day Hundred Day Moving Averages.
Looks like it close just below it's 100 Day Moving Average. Not exactly on a roll.
MACD now below -0- with Negative volume. Not good.
Unleaded Gas (NYMEX) closed at 2.47...good speculative opportunity,for a Staddle or a Short.
These spikes don't tend to last too long. Would set a trigger for a short at $2.09
figuring that if it falls that much that theb momentum will carry it lower.
Would look just a couple of months out.
In the long run, the increase accross the board in the Energy complex will cut into
both consumer spending and coprorate profits.
At some point, oil will diminish it's own demand.
Continue to look for a substantial correction between now and Christmas, bah humbug!
Bearish, but there's several economic reports due early. Futures very bearish, which
for the most part has been contrarian.
will abide by the Mornings Future Indicators:
http://money.cnn.com/markets/morning_call/index.html MCEL continues to running well on good volume.
UQM nudging into postive territory (+26.8% So far)
gl,
baz