Dollar Surges, Nymex and DOW plummet

Posted by Mark Pszeniczny on Aug 4, 2011 5:17:00 PM

The trend is definitely your friend!  As bearish tones continue to make tsunami like waves throughout the market, commodities took a beating along with the entire equity complex today.  The DOW fell a massive 3% on continued fears of a weaker than expected US economic picture.  The dollar soared higher today against the foreign basket as the European Central Bank bought bonds in an attempt to ward of a debt crisis taking over the region.  A weaker jobs outlook also played heavily into the mentality of traders today that had most running to book profits as quick a they could.  As fears of the dreaded double dip recession continue to make their way to the front page, Markets across all lines have taken huge hits.  I must say, from an end user perspective, this is OK.  The major hurdle for the Country to leap over  and to finally overcome the recession has been higher fuel prices.  Without a less expensive way for Americans to go from place to place, ship goods,  heat their homes, etc. etc. ,it is impossible to even think to believe we are in a better place.  It all starts with lower fuel pricing.  The key now is for these levels to maintain for a reasonable amount of time, if not fall further.  Demand will be a central player in the equation "where do we go from here" .  At the close, Crude fell $5.30 to $86.63, HEAT dropped .1250 to $2.8939 and RBOB lost a staggering .1941 to $2.7372.  Expect to see a buy back on Friday with Monday's action setting the tone for the remainder of the summer.

heat chart

RBOB CLOSE
                 CLOSE       CHANGE 
  
SEP    27372       -.1941
OCT    26288      -.1763
NOV    26120      -.1659
DEC   26049       -.1605
JAN    26100       -.1593
FEB    26239      -.1587
HEAT CLOSE
          CLOSE    CHANGE
SEP    28939     -.1250
OCT   29048      -.1270
NOV    29169      -.1293
DEC   29293      -.1308
JAN   29416       -.1319
FEB   29424       -.1324
Read More

Topics: Weak Jobs Report, Double Dip Recession, Dow falls 3%, S&P Downgrade, Dollar Strengthens

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