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Technology Stocks : Dell Technologies Inc.
DELL 132.08-0.8%3:59 PM EST
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To: TigerPaw who wrote (176105)5/23/2008 8:11:17 AM
From: t2   of 176387
 
That would only happen if the price of oil was based on a temporary shortage causing a supply and demand imbalance. I think instead that the price of oil mostly reflects the fall in the value of the dollar. Look instead to inflation and debt to establish when commidities quit rising in price and allow the U.S. market a chance to recover. I'm still selling rallies

I agree it reflects the value of the dollar but in a different way. That is, funds are seeing it as an investment today and pouring billions of dollars into funds that buy oil futures; in a way it is just like the tech bubble of the late 1990s. Looks like a lot of people want to join in this "party".

We are getting our parabolic move in oil right now. I don't know if you saw this video on cnbc about amount of money that has flowed into buying. I found it very interesting and explains the sudden gains. In addition, many commercials appear to be buying back their futures that were sold when price was lower.

As for equities, except for certain situations like Dell, I am not that bullish. I look to play just earnings or valuation (eg Dell) stories. By way, Dell got upgraded today on the prospects for server sales today. Even if oil starts dropping in a big way, that might cause markets world wide to drop...just like the tech bubble did. Only bullish scenario is a slow and steady drop in oil prices but once it goes parabolic, you can forget about this posibility.

cnbc.com
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