The Force is whispering........
It tells me that today's big drop in most forms of energy was not based on fundamentals or supply and demand nor on speculatin' shorts but on pure puking, gut wrenching, bowel loosening fear.
Fear that economies were going stagnant, fear that Bernanke's admissions were the tip of the iceberg, fear that the worst is yet to come...as it is....fear that expensive oil and coal in such an environment are not worthy places for wealth, and fear that while Peak Oil is the truth unvarnished, the coming direness will kill off demand sufficiently to keep energy prices down.
Pure unadulterated, crystalline, cold, bitter, mouth-drying, sour fear loosening the ties and bowels of energy traders.
Today's drop seems significant for it suggests that the energy sector is a bit synthetically inflated. But most important, it suggests that fear is becoming the predominant emotion in the sector.
Long story short, gold may decouple from oil. The last bullish sector might be kaput, signalling the predominance of gold.
Can there be a gold bubble coming? I think I see one on the horizon. |
