Wednesday, September 9, 2009
As a follow up to yesterday's US Dollar blogpost. The US Dollar as I type is trading around 76, gold is flat hovering that psychological $1,000 level. The $:YEN is at 91.73 lowest level since February, then again all currencies are down across the board. The weak dollar and strong Chinese oil demand is propping oil prices, OPEC minister said this morning that they are "happy" with oil at $70 per barrel. I have been repeatedly calling that the charts indicate oil breaking over $75 resistance and running up to $90. Oil lags golds moves and gold is breaking out, expect crude oil to follow!
I'm suggesting the offshore drillers the $OIH, or specifically Transocean ($RIG) which is in my Itz Pix suggested stocks list. By the way the leaders in my stock picks since July '09 are Hecla Gold ($HL) is a whopping +55% in 2 months, copper mining stock Freeport McMoran ($FCX) +51% & Alco ($AA) +40%...oil stocks include Transocean ($RIG) +19.63% & Valero ($VLO) +16.5% which I see energy following gold & these 2 stocks ready to really climb!
Some interesting articles on oil... The Global Economic Crisis: Strategic Implications for Turkey, Europe and the United States ... Spinning for Russia
*click on chart to expand image