When China starts to flood the rich lists

The milkpowder contamination case, SanLu brand is the instigator to tighther regulations in the food processing industry, they say that a crisis is onli the way to correct things and to make any deviation back to the original course, and i believe china food processing industry have always lack the standard required to make food edible, consumers buy for the mere fact, either it is cheaper, or it is a brand that has been build since earlier generations, like the white rabbit sweet, the can of mackarel with black beans, the tauchu, etc.If the downline can have more tighter regulatory boards then the factory standards will uphold and china production quality standard would be recognized .

In fact , this has what they have been striving for these years, to balance between cost structure and creating quality products, but somehow somewhere the items got a bit tainted with chemicals, first lead now melamine, but it will be a pragmatic leap to the regulatory boards of China and this new chapter will be a new one where quality must be assured and this one off set back is countered with the acienct Shih Huang Ti style, burnt all the books and we shall be in control, the chinese burnt all the goods and now they hope to turn a new leaf. Chinese have great adaptability one thing for sure, as long as there is a patent by hook or by crook they will be able to take that patent and make the product china made, u can throw a chinamen into a den with the lions and he may still either wrestle his way out like Wu SOng, or he may just talk his way out by trading with the lion.

Chinese must learn to innovate and create, strive for inventions, not trailing the back of technology, when the strong hold can learn to create and i believe with such a huge population, intellectual property is not a problem, they will create a whole new technological industrialization era in the china industries, maintaining a low domestic cost structure and high efficiency with tightly regulated standards of qualities.

Expect the unemployment in the US to show and unwind in countries outside america, they either sack u or they send u to another branch outside asia to replace the management for a lower wage, those previously reporting to u might be still employed as they did not misjudged and made wrong bets, they guy u were screwing for the blend coffee and slow report handin would be the guy taking your position, imagine your entire department being closed down and company cutting production at all cost due to the global slowdown.

Psychologically this is devastating to watch, emotionally it will impact any citizen that is alive and watching, if u think isolation is ur game, think again, all who lived thru the depression, understands the depression, even the rich fear it as it clamped on their tails so close they almost got dragged in to the pits together with the rest. One thing i believe could help the people is thier prudent and healthy financial practices, savings and cash holdings, proper allocation of capital is the right way to live. Social problems are going to rise, crime rates are going to balloon, like it or not if u have a license for any armory possession i suggest u take up some artillery and stack up for safety. The us is already bancrupt i fear it can hold for only that much, the only possible help the citizens can do is being euphoric about the amount of cash poured in to the system, and hope that it would play it way down to homeowners and depositors.

All eyes to the GDP report

The mark to start the recession period is here, most of the wall street traders think its too late to even consider the start of a recession, the path has long begun before the first stimulus plan to initiate a tax rebate, all the money they put in temporary can boots the gdp figures and earnings but the effects are weary when the banks hoard and flee to the feds for even more money as they cannot even supply the withdrawal from depositors.



There are many news report predicting what the feds will cut, but in my book it is never significant as first the figures are mostly just a mere forecast and bench mark, it is not the actual lending rate, if one would keep a close eye, they would have to see the LIBOR and the loan term, the longer term sold the more chances that bankers are loosening a bit. The feds rates onli mark the movements in the financial floors and does not have a mind of its own, the onli difference it makes now is that it does not affect LIBOR, Libor is in frenzy mode so is the Index.

What we going to look at is how the dollar rally can sustain, if things are going to continue to unwind, dollar rally is going to be stronger but it is going to loose the steam once, things start to look a bit better and when the housing price has a bottom

Commodities, inflation, and rate cuts

Who dare to bet that interest rates are going up, nobody as the feds wont have the balls to raise them, it is either maintained or lower down, the bet now is to lower another 50 basis point, then it would be a carry trade instrument, many have shown exposure to currency positions that are not known to the public and with such sudden spike in borrowing banks mights start to have carry trade using the dollar in the next 5 years, The japanese delayed and protected their banks and today we see that the peak was never revisited, when the printing continues inflation will roam the US and prices of commodities have no where but up !

I believe that there is no way the bancrupt US government can continue to support their acts of proping the dollar and pushing it out to the consumers, if slowdown happens in a more severe manner, consumption appetite will fall, and we have slimmer us citizens in terms of size and wallet. Long term rates have no where to go but up if we take a look at the printing engines production, and i would urge commodity holders to not forget the fact that commodities have strong fundamentals and they are scarce, and expensive to produce, new oil are going to cost around 65-70 per barrel, u tell me who would sell ?

read up

• Prices are not low enuf
• The gearing, debt management, asset allocation and financial planning
• Has it hit the manufactoring sector that hard? if cash dun flow business has no turnover with large receivables u tell me how to survive
• how? almost cost dy? whack in and hold till i old? CL,nymex
• REad up the whole october
• NOw mutual funds holders start to realise nothing is safe
• Even gates can predict the economy
• Speak about buying for elections and stock predictions
• Financial Socialism will help us evade the '29 depression
• How to regain confidence when everything is vague and gloomy and dark
• One for unemployment price tag = 300 billion
• 1.35 not going to hold, use ur trading plan !!!!
• Cash is king? but what about the dollar crisis?

Read and Relax , dont panic dont go against the feds

I can tell u the financial market deteoriation is going to eat up even more market capitalization and leave you wondering where has all the money suddenly vanished to ? You might probably stand back and ask where can i put the cash that is safe and not going to lose value, then u start to think hell i have diversified my asset and practiced the asset allocation of 10,20,20,30,10.. 10% fixed rate bonds/ deposits,20% cash, 20%gold,30% stocks,10% in risky security.

Then u start to form a thought, i dun think all will go bust at once, so diversified is going to keep me safe, I think one way u are right and the other way u are wrong! If the dollar really go bust, only gold is going to safe u! But if central bankers cartel is going to manipulate gold prices again, how would u guarantee it is going to bail your portfolio from total destruction, as u all know average cost of producing oil stands at65-72 level, deflation of assets has started to infect commodities but below cost would send the sellers to hoard oil and push it up again.

I mean if u feel the dollar will be the one going up and interest rates are coming down, hell ur bonds are going to take a hit, shares are going to plummet, as exports drop affect gdp, inflation will kick in food prices, ur cash holding has not the same purchasing power and suddenly all looks so much more expensive like when gasoline was 4 bucks.

Then i recalled an article titles SPEND spend SPend, that emphasize on spending smart as the prudent investor, spending at the current value not onli ensures that ur purchasing power is maintained and chances of losing purchasing power decrease in a volatile economic period, and in addition to spend wise may also mean to restock for ur biz when time is rite, to replenish staples before pricing sparks, but if purchasing power is par by earning power, if income is consistent but spending keeps increase it will affect our balance sheet/portfolio.... Are there nothing that is sure and concrete in the world ? i am asking the same question, so a trading plan, is inevitable

8,500 succumb or Stand out

If the saying Americans are always first to lead, it would be my say that they are leading the bear rally, with 1000 point swings, now u start seeings a approximately 700 swing from the bottom daily, but really where does it brings us, weekly we are still a bit lag from the top, there are no higher high call, to confirm an entry.

Technology are really leading and it is their earning that are least affected and not to mention inflation data that were stable, who could blame inflation of scared of creeping out the door when it has been strained by banks around the world, reverting back to the dollar, boosting its value for a short term grace. I scold myself for not calling a temporary top in gold since they are going to do some prime pumping for the dollar and the entire mortgage market.

End of the day, when the real situation arises and liquidity is not available , we are going to see our legs get dipped in paint and soil again, tainted in red, but as that day comes i suggest enjoy the current rally, Dow vs usd correlations remains utmost strong and i believe that it is the way it is being played now, what say u give a comment. I have called for a technology rally from my first post now it has given me one, i wanna know till when it can last? Ambac wants to be saved, are they significant enough?

euros ..near 1.35
oil near their average producing price
Yen still far from target since crisis did not unveil that badly
Gold, sold as they rush with the rally
Commodities might spark a rally from this point onwards as long as inflation remains low concern, it will give an indirect approval to print more trust me if u can skin this cat!!!

--~~ trade according to plan; discipline will ensure safety and perseverance~~--

The plasticity of the DOW and Human Nature

1000 points up to make it look good

-suddenly all cries that subprime is over, dont forget that the crisis has just begun to unfold

-not that i want to stop u big guys from skinning a fat cat, u only find lipid accumulated beneath a thin layer of dermis.

-but the central bankers are buying equity stakes of banks, financial will lead but again how long before another lehman strikes, 

-bonds and treasuries risk are higher than before, even the ever safe municiple bonds are now deemed as Financial WMD

-dollar have weakened and the pound & euro is strenghthening,

-if one had collected gold as i instructed with a sound mind and doing some home work, one would be a bit well off

-mortgages are still around to be foreclosed and defaulted.

-By next year march, the bankers have to repay the loans

-Central bankers are tapping ever tap and pipe they have until the drought starts,

-Euro cannot buy treasury papers, so it is good and bad if liquidity is  a problem

-the japanese wishes to start their domination plan again like WW II, they used the bicycles now they are riding the bicycle notes to the top rank IMF bankers

-Oil has rise in tandem with the yen and euro.

Take a birds view before jumping into the market, there will be more calls in the market but i'll be the maverick to pUt them .

financial crisis

As a psychology student, one might always conclude that we understand the way the human mind reacts, the way our cognitive process is being deemed, the reactions and ways to counter is already mastered by us. We can have ample sets of theoretical solutions to different problems, and i can also tell you what are the different stages when we face with anxiety, fear, loss, grief, greed, etc. BUt is it essential to determine the way we react, it is the way discipline is learned after experiencing all these levels of gyrations not only bounded to the indice but our own mental indice.

One day our moods can swing from sudden outburst, to sudden breakdown if being affected by the environment, sentiments, people we care, loss of close ones, or destruction of wealth accumulated through many years of hardwork. I believe no one is prone from the effects of emotion guided behaviors and as mere mortals, even psychologist can only delay the process and induce insight into those that have already faced breakdown, or mental instabilities. Challenging an individual to face all their challenges in life with a clear mind is harder than climbing Mount. Everest. At least you go in a team to conquer the mountain, in reality u are alone, you have to look into your pockets, take care of ur self, look after people around u be considerate, understand the people you interact, be cautious with what comes out your mouth , think right, act right and lastly learn to release what is build up as stress or tension .

This is worst than your daily wall street trading, worst than being a computer, the information we take in with onli 10 % of brain power is more than what your basic desktop or laptop can receive at once before overloading and overheating itself. Human need to always look for some place as a guide, look for information and strategy to imitate for success. But when the situation is vague or ambiguous, or filled with uncertainty we only able to look for direction among the mist. Nobody wants to risk anything for nothing, if the assets are not priced right for the last time, we are going to see the markets react again, Lehmans swaps were priced fairly cheap but it was the volumne traded and the companies involved not making a sound that helped the markets recover, Libor rates slumped that day, markets were poured with liquidity, and EU, America government swear to flood the market to spark a bear rally.BEAR RALLy

Euro 1.35x i hope will hold, yen is still strong but short term plays are permissible, if euro strengthens i believe pound will follow through , if the sale of assets and Feds + treasury buying into banks equity we might see lending start and the second wave of dollar collapse

Either way we are at crossroads to allow assets to deflate, or allow hyperinflation to occur and inflate the dollar, debase the value but push equity up thru illusionary valuations. GOld my fren is still facing shortage in physical form, paper traders are only the ones manipulating them, the usual pattern of fall after European physsical market closed and rise when asian markets open is repeating itself to tell that only the central bankers cartel is manipulating paper traders of gold.

Dollar and Gold manipulation

Gold sways from 930 dow to 849, 

Dow swings 1000points,

Dollar is up at 82 dollar,

Yen weaken against the dollar to 100level support for usd, always trade with a TS, FR for dollar is about 101-102, fundamental wise dollar are still going down the hole.

Hyperinflationary period might happen, wage scale might contract, unemployment are still going to increase, business will continue slowdown, before the president steps up socialism is the approach politicians are going to use to protect lobbyist!!!!!

Congress is also under the control of treasuries, social securities are going to be the next bubble, treasuries itself is also a problem, bonds are starting to implode, the confidence is being derailed to believe that it is going down confidently

Dollar is fiat, and made out of thin air, take a long term perspective and only time can tell, the decline in gold today only happen when london physical market closed, comex traders/ paper traders....or should i said manipulation in gold prices are the reason in the plummet. Pension plans are going to be in jepardy, americans are going to see some social problems later, crime rates are going to upheavel !!! I would only say buy gold in every pull back and thats what i am going to do.

Banks are continue to go bust, only social partners of the government and lobbyist are going to be protected. Be prepare to fled to save haven, if more banks are going to bust the only market we are going to have is the unemployment market and intellectual employment market, or selection of intellectual property or experts in different fields and export them to countries like china, and india.

Understand to trade the volatility, there must be a great plan, establish a level of risk tolerance and available credit to be lost incase trade moves antagonistically, and lastly trade with discipline.

TS and protecting your profit

Look at the reversal in EUROs to the 1.35x level, if one had protect their paper gains this would not be a problem, strategize your trade plan. Yen is flaring very strong and we are looking at the foreign assets unwinding, or some say the lehman assets unwinding as well! i am clueless but the fact credit is euro is also tight i think the downfall is as limited as the us just the scale is also smaller. YEN might look at a furthur appreciation to 96 against the dollar, personal two cents.

What the US has as an EDGE

When i first mention, the unemployment will shoot up and the paulson plan will not work, it is the mere fact that the root of the problem is still far from being addressed. Liquidity and recapitalization of banks are the way to go if they want to avoid a coming depression. Depression is no more a word, a status that the Americans might face if the fiscal spending, and required policies are not being done.

If banks cannot find the confidence to lend there must be a root that leads to the lack of confidence, and they must look into the underlying problem and not just treat the symptoms, it is like giving steriods or morphine to patients, putting them thru euphoria onli to return sick later on. Recapitalization can happen in many ways, we are hearing call from great economist that the bail out are a must, the feds are doing the right thing, yes they are doing the right thing if they want to prolong the effects and create a softlanding, but is that what the nation wants? The plummets speaks for itself, the loss in market cap speaks for itself. The market anticipates, and if the nation feels its in a recession it goes down 5-- points, if it feels a depression is coming it wipes off 800 points twice to show that they must be priced into zero earnings and future bancruptcy occurence.

What we must know is that the method of inflating out of the problem if applied and coordinated at a global scale will surely reach the root, when one person is deviant, it does mean its wrong, it is only against the norm, but when every banker, every troubled nation is doing it, it is going to be acceptable. Tell something wrong a hundred thousand times, people might believe u. Honorable Jim ROgers, have made a lot of right calls, and has retired a long time ago, he only invest and invest for his future generation, for his self fulfillment, for the entire excitement of investing. He would not mislead the government if he wants the future is good for his decendents, he realize that the feds and bankers are wrong, he acknowledge that markets should be allowed to fail, let the weak banks be possessed and resold to the stronger banks, guarantee the deposits of the citizens, encourage savings schemes ( monthly fixed amount savings, inflation adjusted savings plan, savings plan interest yield that are attractive, introduce different tier interest yields for more savings)

Let those who made mistakes fail but softly, nationalization by the UK and european banks are a good move, but they have to start selling the failed banks assets to the stronger banks as it is also unwise to be burdening the taxpayers money, foreclosures and defaults have to be reviewed and delayed to allow the nation a longer period of repayment and flexibility, sudden increase in defaults and foreclosures benefit no one at this level of crisis, the feds should allow a certain group that are affected to delay their mortgage defaults and repay in payments that are longer tenure and lower monthly payments, but at a higher interest rates, a ten year mortgage loan if restructured in to a 15 , or 20 year mortgage repayment could help delay the pain in holders.

Banks are required to provide transparency on their holdings in MBS, CDO,CDS, or any assets, and allow the SEC to regulate the transaction and strength of the banks before intervene and making capital injections, either thru buying their shares, issuance of warrants, nationalization, set up a regulatory body that will run auctions of troubled assets write off from the balance sheets, dilution effects might take in but it will pump the capital into banks.

The US are now flooded with financial experts as layoff have taken the job off many people, this cannot continue, and they realise that and this is why the entire world is working on different avenues to save the us from going broke! China would have to step up as they have been building their muscles for just too long to flex it infront of the judges, if they make the move they might replace the worlds greatest economy and allow the financial market be shore with greater wave of liquidity and capital. There will be more corporations going bust, more weak companies will die, market correction is not over, support levels are stupid, Technical analysis can only be used in markets where fear and volatility do not dominate, it is ok to be panic and sell stupidly, but when herds are reacting from fear of losing everything, it is no more a panic sell issue, it is capitulation. Nikkei lost almost 20percent HSI is fluctuating at a 7-8 % range downwards, if this is not capitulation i do not know what is capitulation.

TRading with a game plan

Respect Stops, understand your personal risk tolerance!! These two investment principles are there for a reason please practice it!!

 Current markets are for trading only, no more buy and hold unless you are a cash printing machine. Volatility shown in the US swings are far greater than any swing trader could handle, i do not know how many a-b-c are there in the dow in a day, but hit n run is definitely the strategy of the year. Look at sectors that will be positive to any positive news in asset prices, as we are beginning to look at home buyers, the first herd of  kiasu people that want to profit from home prices that decline 30% - 45%.

UNDER stand that the financial market is still in being wrench and squeezed for any liquidity, the only way to reignite the banking system is thru continuous lending and by hoarding cash, bankers understand it is also not a smart move, as they are still paying interest to deposits, and they need to move the cash one way or another, make use of rate cuts to hedge in lending risk that what the feds are asking you to do, with the emergence of two bank holdings, deposits might be a way to slowly save them from the troubled loans, but remember policies and fiscal measures must be efficient and effective to show any help or improvement in financial markets. I believe there are some experts that say a bull run emerges from recessions and it is often during the recessive periods people gambling and speculative alter-egos come out and tell them maybe we have gone thru enough, or maybe it is not that bad after all, and the bull rides on that mentality.

Buffet has seen enough to understand every recession or stock plummet gone through would only lead to a stronger bounce up wards until another financial wreck appear. Gold is looking strong and if it can hold at this level for this two weeks i believe it has to go up, DOLLAR is only temporary supported by the foreign funds unlocking their capital from regional and emerging markets, commodities, bonds, etc. Till we see any fundamental change in the dollar i dont see why the 81 or 8x level must hold for long. We have to wait the bear rally cannot hold then all hell break lose for the dollar, the onli hope we have is to transfer more dollar holdings abroad, transfer more inflation abroad from america. Maybe they can inflate the dollar away from troubles.

yen, euro, gold whats next

Play the crisis have never been this lucrative, and the second short position should have been closed yesterday for usd/yen. Like i said always have a cut, loss or PT level as it is  crucial to protect paper gains, and do not let the greed lose a short from two nights before at 101.5 would be sufficient to make u happy till the week end when u closed it last nite at 99 level, and gold has spiked by 35 points last night should we start profit taking, preserve your capital and play with house money only always set a cut loss point and move the TS up according to profit as you need to protect your gains.

Looks like the treasury for 10 years note have started to decline with a sudden coordinated move to cut rate, i mention in many of my previous post that this is a coordinated move to support the USd and maintain its hegemony status in the world trade, and the FT zones is another way to make support to the debased fiats. 

One point we should take note is that while coordinated actions are suppressing any sellers in the dollar we are going to look at the bigger picture with the furthur inflated dollar and unlimited printing press working hours. Yen is  currency to look at when we predict the unloading of foreign assets from countries outside the dollar, the dollar looks good at the moment but it is only better to establish a short position, the higher it goes the more shorts will start to appear as fundamental wise, debt to gdp shoot up, deficit shot up, the money supply shot up , unemployment shot up what else shot up the dollar shot up in contrary to the decline it should have experienced. 

To justify my statements are the value of gold which trailed the dollars appreciation, this is no change in the major trend of the dollar, it only depicts an illusionist waving his magic wand and putting a cloak on the dollar fundamental to push it up. Gold is telling us the story that it is not true to continue buying the dollar story as history shows whenever the increase in the dollar value the gold price would drop but these few weeks are turning the story around. THIS furthur confirms that the dollar index only reflects the weakness in euros and the other currencies they are benchmarking, the other indicator is the value of yen appreciating against both euros and dollar, shows that it is unloading of assets and reverting back to dollar from the carry trades that were supporting the dollar.

With a global coordination to speculate and manipulate the dollar to deflect any selldown of the dollar will only provide a safehaven in gold, as it is the one true denomination that is considered as world currency, where else can you find an equal status of valuation in the entire world accepted so widely!! It is the mastercard and visa of currency, it is the godiva of chocolates, it is the creme de la creme of the purchasing power  protector. It also strikes me as China has no intention of appreciating the RMB and so is yen, they both hold large reserves in the dollar, which would emerge as a better currency to hold when the dollar bubble go bust, the treasuries will be sold down , interest rates will go no where but up!!! liquidity is only another archaic phoneme combinations when they are holding fiats that are obsolete.

read up when there is nothing left to do

Throw in an intraday trade?
Buying for long term?
Bottom or no bottom?
The fact is we are deeply oversold for another technical rebound from last nites show!

Europe is gonna bail out?
Aussie start to loosen abit, carry trade over? Other banks and countries to follow? as i said this move is coordinated, inflate everyone out, export the inflation to third world and producing countries, and emerging economies, burden everyone else with the financial plough they raked themselves. Yen is under attack at this moment, dollar and europe will be back in demand? no body knows but i would hell love to reenter yen later :) when rates are too low we look at countries like Brazil SGD, CHY, Euros, NZD, when inflation starts to take effect look at the AUD CNDwhen commodities make a move .

Taking into account utilitise and energy stocks, telcos, and tech companies, looking at liquor, ciggies, and food consumer products companies at this moment, China food producers are underpressured despite some being cleared off the Melamine claims.

• what did i tell ya abt lending in euros.. its the same up tight story, all of them are linked, lets see the 1.35 level hold on.
• Crude oil being supported 5 bucks up
• Europe bankers seek government intervention at a immediate level.RBS the next?
• Russia moves faster with more rubbles in banks
• Anyone likes the blame game?
• Weekly report
• Ireland pegs
• carry trade is died? yen to outperform? or are money reverting back to euro and usd
• Coordinate it well and we might be better, now they blame LIBOR, why not blame human response to fear as well.
• the BRIC LATAM, ASIAN emerging market story tell me the foreign funds pull out i buy that
• we are living in a world of black markets
• chance to buy?>
• Buy a bunch or mortgage when all banks are being tied, they will hoard even more cash while unloading the mess to the taxpayers. The shopping sprees starts now.
• They are lending out more effectively, talking about arbitrage
• Commercial paper buying , hope can help in short term loans free up some liquidity
• Is this the bottom since there are so many fearful, capitulation is not seen? recession cant be avoided? i thought they were already in the recession.
• Dr. Faber himself loves the gold in every portfolio

Euro, is it too low?

If you had trigger ur PT level last nite when the dol,ar against yen was at the 100 level kudos and congratulation, with the dollar pulling back so much are we looking at a short term rise in the euros, they are holding back fairly well at the 1.35x level and gold i might say dint not disappoint many traders last night, however commodities remain the concern and natural gas is looking very interesting so is crude oil.

 Fellow blogger Dali mentioned and it strike me that with all the bad news around destroying the demand and the excess supply we are still seeing oil at the 88-90 levels, it shows that it has outperformed itself , anyways there is nothing much which i can continue pressing on the economy outlook, the only thing  i can say that it is up to the new president of america to steer the country out of a recession(inflationary one). Deflationary asset prices are most likely being floored at this few months and i might even consider buying some myself, as the feds are setting a bottom, they wont sell to u at any price lower than they bought!

They have the holding power as long as we are seeing headline that china is buying treasuries, the onli reason is to keep their currency controlled and not appreciating at a higher rate. Trading FX is fun, tiring, intense but at the same time luck bound sometimes. Good luck

yen, signals the demise of carry trade, commodity and gold

yen has been on the rise since my buy call, and if one has timed the entry well, you would be in PT level 1, and please only play with house money on the moment, there would be anytime a movement to counter the appreciating dollar, it looks like there are a few waves more for the dollar if we take an elliot view, but practice caution, gold has suffered some pullback and is in wave 2, i am looking to add a some position from my first which is bought at an average of 760- 780, one must take a long term perspective when investing in gold as it is first not yielding anything in terms of dividend or interest, but we can be quite sure that it will keep our purchasing power compared to the rest.

There have been some movements, in china RMbi carry trading, and HK dollar as both are looking at great fundamentals, onli to worry is the HK dollar peg, if the dollar realli retreats we are going to see a rise in it?? u tell me euro have been a great short but the selling pressure is slowly reducing and fundamental wise although we are looking at bail outs and the spending of euros in currency swapping we are to realise that the European are only facing subprime and CDOs valued at half of the US, the banks are also hoarding up the Euros, lending cost has shot up and that will surely boost the value of the Euros. 

Oil is still a scarce commodity and we are looking at petrol stations that are sold out in the gas they have in storage, demand has pulled back but opec will reduce the supply once demand is too much, they wish to stabilize the price at the 100 dollar level, as it is a  supply and demand game in the long term consider a position in the future markets.