You would think that this Ceasefire and the original war in Lebanon were the reason that oil climbed above $70 if you were watching the News this morning.
It is not the reason, and won’t be the reason for a future collapse in the price of oil. That will have to come from demand – MUCH LOWER DEMAND.
There is a $20 to $30 terror premium now permanently embedded in the fuel from all the crazies around the world willing to disrupt it’s flow.
The rest of the price rise is from INCREASING DEMAND in ASIA – period.
I linked to The Chairman’s energy chart yesterday which he interpreted as still bullish and a conversation ensued. He responded to me with the following:
Howard: Who knows, maybe I’ve been adding at the top … time will tell. All I know is that I sit in traffic for 30 minutes to go a mile and I live in Beijing… there are hundreds of thousands of idling cars here that didn’t exist a few years ago.
He is sooo right. Take a stroll over to and do some traffic in asia searches .
Here are a few pics:
All kidding aside – the two health care indexes I am watching are RYHIX (Rydex helath Care) and an ETF with the symbol (XLV).
The Chairman also owns some Big Pharma which you can own in an ETF by the symbol PPH.