Here’s Why You’ll Save At The Pump
Reeling in its biggest one-day loss in 10
years, crude oil tanked on the expectation that a recession
will dry up demand for crude oil and products. Today the focus was on
decreased demand from airlines. Air carriers have cut schedules as much as
25% in the aftermath of the hijackings and terrorist attacks. Demand for
aviation fuel is down by 17%. Eventually, retailers will let the lower
wholesale prices that futures contracts represent trickle down the drivers
at the pump.
November crude oil
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and
heating oil
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New 10-Day Low List, making them eligible for an Off The Blocks
short entry. After gapping down $2 a barrel, crude fell nearly another 2.00
and is trading at a one-year low. A similar situation occurred in heating
oil, where the market gapped lower and continued tumbling. Crude fell 3.96 to
22.01, a one-day loss of 15%. Heating oil and unleaded gasoline also lost
12% to 13% each.
Following the worst weekly point loss ever in the Dow and the worst
weekly percentage loss since the Great Depression, stock index futures
started this week severely oversold. Six up arrows from
the Market
Bias Indicators Page highlighted the deeply oversold situation. After the
gap openings in equity futures, locals sold the highs, providing long entry opportunities
in intraday Pullback From High setups. Dow futures closed up a solid 357.00
at 8625.0, Nasdaq futures closed up 57.00 at 1194.00, and the S&Ps gained
35.00 to 1007.75.
In the currencies,
Swiss francs
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The two contracts normally move in near lockstep, but in a flight to safety
Friday — out of both US and European assets and into the neutral banker’s
monetary unit — Swiss francs surged in a radical de-coupling with the euro.
Today the Swiss franc’s move down .0069 to .6260 signaled it’s renewing the movement toward
the two currencies again moving in a more correlated fashion. The euro FX
dipped .00320 to .91410.
Japanese yen
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intervened in currency markets for a fourth time in one week in an effort to
weaken the yen. Japan will have a more difficult time exporting its way out
of a 10-year economic doldrums if the yen is expensive relative to its
biggest purchaser of goods, the United States.