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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (38492)	10/5/2012 1:18:38 PM
From: Keith Feral	1 Recommendation Read Replies (2) \| Respond to of 219159

Oil prices are subject to big downside pressure as oil moves decouple from the rally in stocks. Oil has outperformed stocks by a wide margin over the past 10 year. I don't think it's sustainable. As far as gold goes, there is a long term 13 to 1 ratio between the price of oil and gold. If global oil prices fall back to $100, that could suggest $1300 for the price of gold. Oil has really performed lousy lately even with the weak dollar. If Iran and Venezuela see new leadership, I think that will reduce a lot of risk premium in oil prices. Gold and silver have staged a huge rally back near last October's highs. My only observation would be that there are a lot of profits in these positions. I like using up whatever profits I can on those kind of rallies since I have no long term bias towards PM's. Frankly, I get sick to death watching oil prices creep up any time there is good macro data in the US. I think further decoupling of oil and equities would be very positive for the global economy.