Market Overview

Tempting Tuesday – Greecing the Wheels for an Uphill Climb?

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U.S. Crude Oil Stocks Graph.The Dollar is at 75.24 at 7am

That's because the Euro is back to $1.436, the Pound is $1.619 and it's 80.16 Yen to the Dollar.   The weaker Dollar is pushing the futures up another half a point this morning and oil has flown back to the $95 line, where were shorting it again so thank you NYMEX crooks for another crack at a Billion-Dollar winner this week.  Our trade ideas on the oil futures racked up several Billion in profits in the past couple of weeks and you can read all about that strategy in June 11th's Weekly Wrap-Up so I won't get into that here.  I already called a futures short in early morning Member Chat and we caught a quick ride down to $94.40 but now we're back at $95 as the Dollar gets back to 75.20 and we're going to go short again for the same reason.  

What is that reason?  GREECE IS NOT REALLY FIXED!  

There, that's not a complicated premise, is it?  If Greece is not fixed then the Dollar should get stronger and if the Dollar gets stronger then oil heads lower (read all about that relationship in Stock World Weekly) because it's priced in Dollars.  Aside from being priced in Dollars that are priced too low – there is simply WAY too much oil floating around the World.  Although the NYMEX crooks have gotten rid of all but 65 Million barrels of oil that they pretenedted they wanted for July delivery (down from 425M barrels of fake demand at the peak), they have done so by pretending to want 519Mb in the next 3 months.  So, like Greece, the NYMEX crooks have simply extended their problem (ordering barrels they don't REALLY want delivered) and they are pretending the demand is still there.  

Unfortunately for them, the clock is ticking as they have already stuffed 188M barrels worth of contracts (188,000) into December and, as you can see from July as we tick down to the last day – they don't really want even 1/3 of that amount to be delivered (more like 35Mb tops) so there is going to be hell to pay at the end of the year, no matter how successful they are at kicking the contracts down the road for the next couple of months:  …
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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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