WTIC Oil, daily
WTIC Oil, monthly2, rainbow
Summary
So, another day higher for the main US markets.. and most asset classes appear in distinct mid/long term up trends.
With the Fed throwing 85bn of 'new money' into US financial institutions, at least some of this is getting used to put in a bid for both equities and commodities.
The Bernanke wants inflation..and it looks like he is getting it. The coming weeks and months will be particularly interesting in whether WTIC Oil can break, and hold above the big $100 level.
Considering the Fed is not likely to stop the 'print print print' policy for a very considerable time (if not..forever)...you'd have to think WTIC Oil might start to ramp soon, and it could even spiral out of control..testing the 2008 high.
If that's the case, then it has to be asked, how will the US consumer react to $147 WTIC Oil. After all, that would probably equate to $6 a gallon, if not $7 ?
Goodnight from London
--
*next main posting, late Saturday, probably on the US or World monthly index cycles.