Market Soapbox 09/12/05
Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535
Last week good market resilence, today a split tape day, oil down to $63.22. Dollar strong, bonds weak. Oil & energy slapped down.
A new series on Chinese and American banking will be posted this week, time permitting. Todays find of interest regards oil possibly pulling back to $35 from MSN.
If you wanted some wildly cheerful news or at least cheerful thinking, it came from Forbes editor-in-chief Steve Forbes. He suggested on CNBC's "Squawk Box" this morning that crude oil could drop a lot -- maybe to as low as $35. How?
Because demand is dropping in China and the United States. Technology will help oil companies find more oil deposits. One can profitably refine Canadian tar sands into motor fuels, and Mexican reserves will be bigger. One can make a case for crude oil at around $35 a barrel. "But $65, $67 $70 oil? No way. This is a bubble," he said.
Now, before one dismisses Forbes as a wild-eyed capitalist wacky, at least one member of the Market Dispatches team is old enough to remember that Forbes magazine was one of the first to predict the oil bust of the early 1980s.
Forbes talks about $35 oil.
Sorry for the brevity of this report, soapbox will be scarce this week, as we have been deployed to the Adriatic.
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535
Last week good market resilence, today a split tape day, oil down to $63.22. Dollar strong, bonds weak. Oil & energy slapped down.
A new series on Chinese and American banking will be posted this week, time permitting. Todays find of interest regards oil possibly pulling back to $35 from MSN.
If you wanted some wildly cheerful news or at least cheerful thinking, it came from Forbes editor-in-chief Steve Forbes. He suggested on CNBC's "Squawk Box" this morning that crude oil could drop a lot -- maybe to as low as $35. How?
Because demand is dropping in China and the United States. Technology will help oil companies find more oil deposits. One can profitably refine Canadian tar sands into motor fuels, and Mexican reserves will be bigger. One can make a case for crude oil at around $35 a barrel. "But $65, $67 $70 oil? No way. This is a bubble," he said.
Now, before one dismisses Forbes as a wild-eyed capitalist wacky, at least one member of the Market Dispatches team is old enough to remember that Forbes magazine was one of the first to predict the oil bust of the early 1980s.
Forbes talks about $35 oil.
Sorry for the brevity of this report, soapbox will be scarce this week, as we have been deployed to the Adriatic.
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
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