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To: Cogito Ergo Sum who wrote (78989)	6/3/2009 1:16:59 PM
From: Keith Feral	Read Replies (1) \| Respond to of 118717

$40 wasn't a sustainable price level for energy prices. $50 hardly seemed adequate, and $60 feels about right. $70 is getting a little nuts, unless people are trying to make the argument for $100 oil. It's too late in the season to get that big of a move in energy from here. I think oil will have to prove itself from this summer to next summer. This year, the monthly gains in oil prices look nice, but we are getting closer to peak summer demand too. Everyone that's been trashing the dollar has been loading the boat on commodities. However, starting a late cycle recovery play in commodities with a feeble economic recovery leaves alot of opportunities on the table. Utilities with 5% yields Telecom with 6% yields Pharma with 6% yields Big oil with 4% yields It's just remarkable to see how fast stocks like FCX and RIG get crushed. I can't make a very good case for either stock at the moment compared to other asset classes. FCX looks great as long as copper goes higher, but it is a real mess the moment that it take a breather. Monday's rally was more of a gift than this market could hold onto for very long. The DOW probably needs to retest Monday's breakout levels before everything settles back down.