The Holiday Spirit....
Well Oil continues to defy the pundits and energy market guru's by continuing to make newer lows in the new price range that has been established. You can see the major volume area on the below chart which took about a couple of years to form. Price should fluctuate in between this area for quite some time. That area is 54 to 42. If it falls below the 42 area and stays there well you know that something a little more sinister is going on like I mentioned back in 2014 when oil collapsed from its highs. I called it then too if any of you might recall when all the other pundits were talking about oil hitting the 130 area and above.
While it is easy to say "why" price is lower and why it happened it is another thing to call the price fluctuations and truly understand what is really going on.
You see you have to accept the fact that oil is controlled by US money. It is that simple. So they ultimately have the final say in where the price is likely headed. With the future firmly entrenched now in renewable energy oil is slowly becoming a relic. In fifty years or so it will be just another old energy source that we used to use. Much like coal and whale oil to name a few.
When AI is able to solve some more complex problems around elements and how to sustain their half lives then you will find energy will become abundant. For example what if we could harness all the power the sun throws at us daily. Would that make a difference in how we consume power?
Of course it would.
There will be those that say there is too much big money in oil and to an extent they would be correct but like everything change will come. Whether willingly or by force it indeed will come.
If some of you are still holding from the initial short on the position good for you. You are better than me. I am still long the 10 Year (or short if you are trading futures) as bonds are set to fall in price irrespective of the Feds jabber around raising interest rates. Even if they do it won't be much.
Money itself is changing. We are slowly progressing from cash to no cash. From a world where investments were only available to the rich. Now they will be available to all through crowd sourcing.
While I am not saying the rich won't continue to get richer the days of them dominating the investment markets are numbered. The old boys club is dying and although they will fight to keep it alive technological advance will make sure that we are all able to share in the earths wealth. Money seems to be the "be all end all" for most people and while I agree it is important to your life style I doubt very much that the future holds any sort of promise for money accumulation. I doubt very much that it will make much sense any more. I mean where is the need to have massive amounts of money in the bank when your basic needs are already met.
This week I am not doing too much until the end of the holidays. I am not really sure what will happen in the markets in the near term and although I am confident of my long term projections I don't think that taking any risks from this point onward is necessary.
After all my year was good. Why ruin a good thing.
In the days to come I wish you and yours a merry christmas. I do hope that all your new years resolutions come true. Here is to health, wealth and promise.
Around the new years time I will post my predictions as I do every year. They will be there for everyone to observe to see how I view the markets in the year to come. Blessings to all!
While it is easy to say "why" price is lower and why it happened it is another thing to call the price fluctuations and truly understand what is really going on.
You see you have to accept the fact that oil is controlled by US money. It is that simple. So they ultimately have the final say in where the price is likely headed. With the future firmly entrenched now in renewable energy oil is slowly becoming a relic. In fifty years or so it will be just another old energy source that we used to use. Much like coal and whale oil to name a few.
When AI is able to solve some more complex problems around elements and how to sustain their half lives then you will find energy will become abundant. For example what if we could harness all the power the sun throws at us daily. Would that make a difference in how we consume power?
Of course it would.
There will be those that say there is too much big money in oil and to an extent they would be correct but like everything change will come. Whether willingly or by force it indeed will come.
If some of you are still holding from the initial short on the position good for you. You are better than me. I am still long the 10 Year (or short if you are trading futures) as bonds are set to fall in price irrespective of the Feds jabber around raising interest rates. Even if they do it won't be much.
Money itself is changing. We are slowly progressing from cash to no cash. From a world where investments were only available to the rich. Now they will be available to all through crowd sourcing.
While I am not saying the rich won't continue to get richer the days of them dominating the investment markets are numbered. The old boys club is dying and although they will fight to keep it alive technological advance will make sure that we are all able to share in the earths wealth. Money seems to be the "be all end all" for most people and while I agree it is important to your life style I doubt very much that the future holds any sort of promise for money accumulation. I doubt very much that it will make much sense any more. I mean where is the need to have massive amounts of money in the bank when your basic needs are already met.
This week I am not doing too much until the end of the holidays. I am not really sure what will happen in the markets in the near term and although I am confident of my long term projections I don't think that taking any risks from this point onward is necessary.
After all my year was good. Why ruin a good thing.
In the days to come I wish you and yours a merry christmas. I do hope that all your new years resolutions come true. Here is to health, wealth and promise.
Around the new years time I will post my predictions as I do every year. They will be there for everyone to observe to see how I view the markets in the year to come. Blessings to all!
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