I’ve got it! I know what happened today…
Iran backed off on the IOB.
It’s the only explanation that fits!
Interest rates plunged (because we won’t have to raise them to attract investors)
The dollar is up (nobody will be dumping it for the Euro)
Oil shot up on sudden demand as people who had held off on long contracts (to take advantage of currency plays) rushed to cover their positions – essentially a short squeeze on the dollar. This one is complicated but say you just converted 1/2 your dollars to Euros to buy oil next week and now you need dollars again. You worry that now the dollars will cost you a ton so you order what oil you can right away with your dollars so you can worry about dumping the Euros tomorrow.
Gold is down again and the Mid-East Stock Markets are way off which indicates the spike in oil is very temporary and that people are looking back to the good old reliable USA.
The Yen is down 1% and the only flaw I can find in my logic is that the Euro went up 1% but that’s a lot of items backing up my theory.
There is no news to support this so far but then again there was hardly any news about it before… If I’m right then the roof has been raised and there will be no ceiling tomorrow.
If we settle with Iraq on the UN thing then you know the fix is in!
