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

To: Hawkmoon who wrote (9560)	6/19/2008 11:35:27 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

Leave it to the Chinese to prove me wrong.. They hiked diesel prices by 40%, which is VERY substantial.. And they hiked gas prices by 20%. Maybe they are getting the message.. Or maybe the cost to their government of subsidizing those fuel prices is getting to them.. Hawk

To: Hawkmoon who wrote (9560)	6/19/2008 11:50:04 AM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 33421

As I've stated previously, $150/bbl is a psychological resistance level for traders. I have to believe that an arbitrary resistance level on a commodity is much less meaningful than for equities. Certainly established support and resistance levels would be meaningful because they represent where it has been bought and sold and where traders may want to minimize losses. But when we are talking about a commodity such as oil (and its derivatives) you have to start looking at how the higher prices start to influence usage. As the cost of fuel increases the prices of pretty much everything we buy, not only when we fill our gas tanks, we are starting to have to reign in spending across the board. This is going to affect demand. I think that the change in demand for petroleum is going to be far more meaningful than the psychological resistance level for traders.