Auto Sales & Observations 10/03/06
September Auto & Truck Sales
YOY: GM -6.8%; Ford +0.65%; Chrysler -7.5%
YTD: GM -11.6%; Ford -8.9%; Chrysler -9.4%
Not a pretty picture for future demand and economic conditions, yet the broader markets cheered, less growth means less inflation right??
The DJIA was deceivingly down only 17 with the broader market awash in red. Then the DJIA jumped 105 points and the broader market pulled out of the red, excepting the XOI -3.3% & XAU -6%.
Despite Venezuela & Nigeria cutting production, and an industry report supporting increased global demand despite slowing economic conditions for 2007...
Brent Crude futures hit a seven month low due to easing supply concerns. Alrighty then... resulting in commodities and energy taking a shellacking as crude oil dropped almost 4% to go under $59.
Gold dropped 3.6% under $585. This based on less middle east oil revenues means the sheiks & mullahs have less to spend and demand for gold drops. Ok...
What happened to the usual media boogey men, Iran, gulf hurricanes, the end of summer driving season, and whatever blows up the peak oil camps skirts, etc??
Perhaps with the November elections coming, crude could get down to our previous target of $52 to $55.
Could Big oil be unwinding their speculative hedge positions in an effort to keep the Democrats out of office? Lower pump prices may increase the incumbent parties approval rating and chances of re-election.
A democratic majority could lead to passage of legislation taxing the oil companies massive windfall profits.
Conspiracy theorist you say?? nah, perhaps optimism for the worsening economic climate and just a bit of silly paranoia.
Definition of paranoid: one who has knowledge of the truth or is in possession of the facts...
We do think this commodities correction, which is turning into a rout, to be a telegraph for lessened demand and an economic recession.
The handwriting is on the wall as the broader markets telegraph underlying weakness, the number of 52 week highs has been steadily dwindling of late. Watch for next week and perhaps 1360-1365 SP500 as a potential turning point.
YOY: GM -6.8%; Ford +0.65%; Chrysler -7.5%
YTD: GM -11.6%; Ford -8.9%; Chrysler -9.4%
Not a pretty picture for future demand and economic conditions, yet the broader markets cheered, less growth means less inflation right??
The DJIA was deceivingly down only 17 with the broader market awash in red. Then the DJIA jumped 105 points and the broader market pulled out of the red, excepting the XOI -3.3% & XAU -6%.
Despite Venezuela & Nigeria cutting production, and an industry report supporting increased global demand despite slowing economic conditions for 2007...
Brent Crude futures hit a seven month low due to easing supply concerns. Alrighty then... resulting in commodities and energy taking a shellacking as crude oil dropped almost 4% to go under $59.
Gold dropped 3.6% under $585. This based on less middle east oil revenues means the sheiks & mullahs have less to spend and demand for gold drops. Ok...
What happened to the usual media boogey men, Iran, gulf hurricanes, the end of summer driving season, and whatever blows up the peak oil camps skirts, etc??
Perhaps with the November elections coming, crude could get down to our previous target of $52 to $55.
Could Big oil be unwinding their speculative hedge positions in an effort to keep the Democrats out of office? Lower pump prices may increase the incumbent parties approval rating and chances of re-election.
A democratic majority could lead to passage of legislation taxing the oil companies massive windfall profits.
Conspiracy theorist you say?? nah, perhaps optimism for the worsening economic climate and just a bit of silly paranoia.
Definition of paranoid: one who has knowledge of the truth or is in possession of the facts...
We do think this commodities correction, which is turning into a rout, to be a telegraph for lessened demand and an economic recession.
The handwriting is on the wall as the broader markets telegraph underlying weakness, the number of 52 week highs has been steadily dwindling of late. Watch for next week and perhaps 1360-1365 SP500 as a potential turning point.
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