Somebody Showed Him The Memo - Leadership at Last?

On Monday July 14, US President George Bush announced that he would lift the Executive Prohibition banning offshore oil drilling as soon as Congress agrees. Crude Oil has been in a tailspin ever since! Two days after Bush pulled out this  tourniquet for the United States hemorrhaging economy, Finally - something real is being “talked” about that might reverse the madness driving oil to perverse price levels. But the US Congress needs to act fast, before the summer break.

Presidential Magic Wand Causes Stumbling and Tumbling Oil Prices

As the price of oil dropped, the dollar rallied! Is this because the United States is ready to open up it’s vast reserves of untapped oil. If done properly - by the time all of this oil comes online - we should have new technology to replace these fossil fuels. But that will take real leadership and accommodation by the government to help the private sector bring to market new forms of energy replace the old.

A scan below the headlines shows reporters stumbling around to figure out why the sudden drop. The list of culprits is long:

• A surprise in supplies,
• Computer based trading,
• Liquidation of positions to cover shorts,
• Options Expiration.

Enough is Enough - Let’s Get Drilling!

No mention of the President wielding the “Magic Wand” he supposedly did not know he had. The fact that the futures market is all about future prices, and by bringing the United States vast untapped oil fields online - the future markets are signaling that enough is enough!

Surprise Surprise Surprise - Look at the Dollar

The Euro had just made a stab 1.6040 and then plummeted almost 250 pips,

The Pound lost about 200 pips after making a peak at 2.0150! Triangle in Play is almost complete.

Chart Update Update

Inverse Head and Shoulder - Now Formed and In Place - See July 15 Post

 Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.