Wednesday, November 25, 2009
OIL $90+ By New Year
As I write the 75 support level for the dollar appears to have given way, $USD trading @ 74.5...sending Gold to $1181 as well as Silver to $18.69. The Volatility Index ($VIX) is a 20.20 lowest since August 2008. Interesting too, is the Dollar hitting parity to the Swiss Franc.
Talk in Europe of possible rate hike. ~read story~
Those that follow my blog, know it is skewed to the commodities and the lower trending dollar. I believe that oil will and is being pulled higher by the rise in gold and expect a new leg up very soon. I project $90+ oil by January 2010 and $100 in 6 to 9 months. ITZ PIX already has suggested Transocean (RIG) and has Pride Int'l (PDE) on the radar with a suggested BUY under $31.
With Gold nearing $1200, one could expect this psychological level to be resistance and possibly see some profit taking. But my long term outlook for gold over the next several years is a possible double and the same for oil., base on a global recovery and the onset of inflation...yes INFLATION!
*click chart to expand images