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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: stomper who wrote (9339)	5/6/2008 11:15:19 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

the working assumption is that fuel costs are going to be at least this high or higher and thus more political willingness for additional energy from additional sources. I can't fathom a nuclear plant being ok'd in less than 10 years looking at the Monthly price of crude oil the RSI has made a new momentum high and the weekly chart only has 1 momentum divergence in place at the momement and I've been through enough markets that it's my call that we will need to see a double and a triple momentum divergence on the weekly before we witness the ultimate high price for crude. If we get a real, real global economic tailspin from here that will reduce global demand.... no doubt. I think the real story maybe that we've got such an exponential rise in many of these energy stocks and in the underlying energy complex, that it may be pointing to this bigger global economic downturn... which would play into my point that we ultimately experience a 10 trillion dollar contraction in the Credit Default Swaps market. If Warren Buffett is correct and the pain in the financial sector is coming to an end then I see higher prices for commodities. As was pointed out by someone else on here today, the refineries seem to be able to crank enough gasoline out to keep up with demand, it's just that the dumb demand side of the equation does not seem to want to back off. John