An Oil Selloff (Not)Followed By A Gasoline Selloff

So much for the 60 million barrel release by the IEA and our Strategic Petroleum Reserve to help lower gas prices....just think, once those 60,000,000 barrels are consumed over the next 30ish days, those same stockpiles will have to be refilled....

The graph is of the most traded unleaded gasoline contract on the NYMEX and is quoted in cents per gallon.

Wednesday Cartoons

So Much In a Small Twitter

Friends I don't have a twitter account nor do I follow practically anything or anybody on twitter, but this came across my trading desk yesterday and it bears posting. This twitter says so so much. Mr. Bill Gross runs the largest bond firm on the planet and this tweet is huge and unexpected as to why he would chose to use this medium to sound the alarm. To be short if his words that are highlighted in red are indeed implemented by the Federal Reserve as its interest rate policy "in the name of stimulating the economy" NOTHING SHORT OF HIGH TO HYPERINFLATION WILL OCCUR. AND THIS RAVAGING INFLATION WILL OCCUR WITHIN 18 MONTHS OF THE POLICIES' IMPLEMENTATION. 

I can only hope that this will not come to pass, but sadly I see this disastrous outcome as inevitable. We must prepare accordingly. In times such as what we could very well go through nothing but faith and obedience to our Father in heaven, the LORD God will help us overcome these trials and tribulations. Remember friends when times get tough, the Lord's prayer and to live for your Father who is in heaven.

  ⁹ “This, then, is how you should pray:

   “‘Our Father in heaven, 

hallowed be your name, 

¹⁰ your kingdom come, 

your will be done, 

   on earth as it is in heaven. 

¹¹ Give us today our daily bread. 

¹² And forgive us our debts, 

   as we also have forgiven our debtors. 

¹³ And lead us not into temptation,^[a] 

   but deliver us from the evil one.^[b]’

   ¹⁴ For if you forgive men when they sin against you, your heavenly Father will also forgive you. ¹⁵ But if you do not forgive men their sins, your Father will not forgive your sins.

Matthew 6:9-15 NIV

Here is the tweet and the link to a more complete analysis. 

http://www.zerohedge.com/article/bill-gross-warning-operation-twist-coming-2-year

Mr. Gold

A must hear interview of Jim Sinclair. Jim discusses QE, the stock market, the possibility that gold could "have an up move this summer of some distinction", the loss of control by our economic authorities as they tinker with the stimulus spigot, and his long range price projections for gold. A stunning and insightful interview by a man who is legendary in the financial community, who owns his own gold mine in Africa, and who was the middle man who unwound Bunker Hunt's spectacular supernova implosion bet on cornering the silver market in 1980 at the behest of the Treasury. 

Here is the link http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/8_Jim_Sinclair.html
Also kingworldnews is a treasure trove of high level interviews and insight into financial planning, the sight comes out with new material almost daily. 

US Has To Create 250K Jobs A Month For 66 Months To Return To December 2007 Unemployment By End Of Obama's Second Term

A Truer Picture of Our Recovery

Citizens on the dole continues to rise and has just hit a new all time high! The average monthly benefit is $133.24 per doled citizen, which when timed by over 44,000,000 citizens comes to be a whopping amount of money. Where does the money come from to fund these food checks? ...and social security? and treasury debt interest? and health care? and Medicare? and Medicaid?? It doesn't come from tax revenue. Tax revenue doesn't cover these expenditures by half!!!! We, or more correctly the Federal Reserve prints these funds out of thin air which only further exacerbates our inflation and rising gas bills.  

The Real Reason Tripoli is being Pounded and NATO Warships are Floating Off the Coast of North Africa?

If not humanitarianism, if not oil, then...

These events shall, in all likelihood, make the prices of all goods rise and further stoke inflation.

Things (two)to Think About

Boy O' boy do we not already have enough to worry about. Work, spending, bills, friends, protecting our health, protecting ourselves against inflation(see article below this), and just plain surviving. Well on top of all these things, as we each go about overcoming our own obstacles, here are two maxims that should keep us in good stead- straight and secure. They are easy to remember and recall when we get stressed out at home and work and when our life seems horribly helterskelter.  

He who guards his lips guards his life, 

but he who speaks rashly will come to ruin.

A generous man will prosper;

he who refreshes others will himself be refreshed.

Proverbs 13:3 and 11:25

Pain at the Pump Cometh

Most likely this squeeze will be on us shortly. Crude oil has found solid buying support at $96.00 per barrel. Price has probed this level not once but four times and has found solid buying all four times! This usually means that prices have only one direction to go and that is unfortunaly UP.  Crude could trade around 105.00 in the next few weeks, which if it does will likely add another 10-30 cents per gallon to our gas bills.

Click on the graph to enlarge

Another reason why crude could surge over the next few days is at the bottom of this graph. The black and red lines at the bottom have almost crossed and turned upward, meaning that buying momentum for all the momo traders on Wall Street will be buying crude contracts with increasing intensity as those lines climb upward and those blue bars also start ascending. Friends protect yourselves against this inflation!

Options Expiration

This Wednesday is options contract expiration week. Look for gold and silver prices to remain pinned around their current levels. For gold this is 1515-1520 and for silver in and close to the 35's. While this is no certainty it most likely could happen as the large commercial banks attempt to have as many option holders positions expire worthless. After Wednesday and into Thursday/Friday it could very well be off to the horse races. By weeks end gold could be bouncing around 1545. This also though is no certainty as tomorrow is promised to no one and shall unfold as the LORD wills.  
This is just some investing advice, as after many months of repetition, options expiration week has usually transpired with prices flatlining during the first half of the week with the second half being noticeably more bullish. Here again is Jim Sinclair's favorite golden illustration.