Well, it’s a dynamite morning for me (and I could sure use one). I am not as fully loaded as I’d like to be, but my portfolio is up almost three times as much as the market in general is down, and that’s in large part thanks to crude weakening.
As a new month begins, the standouts continue to be precious metals. Gold and silver have been so much more consistent than bonds, equities, volatility, or just about any other financial instrument, that it’s no surprise sentiment is so strong.
I’m more focused on crude oil, which has taken on a role every bit as powerful as central banks in determining confidence in equities. It’s been steadily uptrending for months now, making the tinted series of higher lows, but watch that red line I’ve drawn. Crack that, and you could have a trend reversal on your hands.
There’s an interesting piece this morning in ZeroHedge about famed CNBC commentator Gartman and the fact that, after two months, he’s finally gone bullish on oil. I wanted to mark the points where the man said oil would not reach $44 again in his lifetime (green tint) and his declaration today (magenta tint) that he changed, just like “Lord Keynes” (which, I suppose, is supposed to make one look less daft, since Keynes was a Lord and all). Anyway, particularly with the weekly inventory report looming this morning, here’s the channel:
As we all know……….
For many weeks now, all eyes have been on the big meeting in Doha coming up this Sunday. Judging from oil’s tremendous recovery (now threatening even Gartman’s life, who pledged it would never reach $44 again in his lifetime), it seems a foregone conclusion that the cartel will all shake hands and oil producers will collectively turn off the spigot. If they do, that green tint will be breached and oil’s new bull market will accelerate. If not, it’ll be the biggest “Sell the News” event so far this year……….
I had hinted in the past to this new revolutionary form of energy that could change the energy paradigm: LENR (Low Nuclear Energy Reaction).
It came out in these days the news that the inventor of the E-Cat (Energy catalyzer, a reactor that apparently is able to produce large amounts of energy – heat – at nearly zero cost), has sued his US partner/investor company for not paying him 89M USD, after a successful 350-days test with his device.