ELAM: Crude Oil: The Trend Is Your Friend
Bitcoin traded at an all time high of $ 66,974.77 on Wednesday.
Bitcoin price hits record, WSJ Thursday
If in fact all stock indexes have already reached their respective highs, this is a perfect stock to record the end of the big bullish stock market of 2009. Indeed, fictitious money hit a new high as the first linked ETF begins to be negotiated. Even Tesla claims it is now profitable.
Finally, we estimated that crude oil being both an economic and financial instrument, it could well reach triple digits again. It is down a few dollars today to $ 81.64. But the uptrend must be respected. It wouldn’t reverse until a weekly close below $ 78. Natural gas futures soared yesterday to close at $ 5.17. Here in San Antonio, CPS Energy plans to increase monthly bills by 10% to pay for the high-priced natural gas purchased last February as the lights literally went out in San Antonio. Several leaders, including the CEO, have resigned or will resign soon from their positions.
Team Biden’s approval rating is dropping as quickly as crude and pump gasoline rise. The latest poll figures are in the thirties, lower than those of the three previous presidents this first year in office. The solution has been, incredibly, to ask OPEC to increase production to lower the price of refined gasoline. Why would OPEC do this? OPEC was created to stabilize or increase the price of gasoline. Strangely, Team Biden has not reached out to the domestic energy industry. He has strangled them with pipeline closures, increased regulations and fewer permits since taking office. The result was $ 5.00 in gasoline on both coasts and $ 3 + here in Texas. Once this kind of trend starts, it’s hard to reverse, especially the negative attitude towards the president.
Europe rushed to shut down coal plants. Germany even shut down its nuclear power plants based on an incident in Japan in 2011. But it had to do with a coastal power plant. Germany is landlocked. France, for its part, derives 70% of its energy from nuclear power. Note, France is the world’s leading net exporter of electricity due to its low production cost. Bernie and APC could surely like this French custom.
Vladimir Putin must be delighted. Half of the Russian economy is based on oil. And now he is asking for more concessions from Europe to allow greater delivery of natural gas this winter. Europe has turned to solar and wind without maintaining coal-fired systems, now putting Vlad in charge of keeping the lights on.
I suspect the stock indexes posted their highs for the year. We are in a period of seasonal weakness with the bullish percentage of equities much lower than last February. Caution is in order.