20081031 If the crude oil futures makes another test of the lows, than we may have a box in place for the breakout in either direction.

Crude Oil futures chart

Gold Silver, agriculture products and oil plummet on Friday. This guy, Jim Rogers was expousing himself as a market guru on Bloomberg TV on Friday morning saying, "capitulation, it is time to buy to cover my short positions in stocks". To a question on what else he was buying he said "I bot a bit of Taiwan, a bit of China, and into agriculture" This from a guy who when commodities were doing their blow off top and China stock market as well many months ago was saying "I am long commodities, long China stocks", as though it was going to the moon.

To me this guy is arrogant. Why the hell do people want to know what he is buying. He also said, "I am not a market timer, I am the worst short term trader" A load of hogwash, if you are not a market timer, why are you in the markets man? It is like the investor who gets into a trade in a stock when it is going up, the market turns around suddenly, then the short term trade (or investment) becomes "oh, I am in it for the long term now" This is how short term disasters become long term investments.(non market timing)

I do agree with him though, that buying China stocks is a good deal at current prices. Don't know about Taiwan though as there is no sign of support.

Crude Oil futures chart

20081010 Expectations of a recession (depression) means the crude oil did not escape the global selling of assets of all types. Moral of the story is 'don't believe the analysts (Goldman Sachs super spike;. Remember these guys write stuff based on their positions in the markets, and they are the ones who thought up the credit default swaps and collateralised debt obligations (CDO) that brought the world financial system to its knees as of today. They don't learn from history: remember Enron? At least JP Morgan and Citigroup were bitten there, and now is in the best position of the investment banks. If you ask me they should legislate to take back the multi million bonusses these boffins paid themselves in bonusses.

Crude Oil futures chart

20081004 Well, so much for the rebound theory. This illustrates the danger of trading with a static and stubborn mindset. Anyway, back to the charts, the crude oil chart indicates the direction the economy will take in the coming year.

Crude Oil futures chart