I have said it before and I will say it again. This will continue till about the 3 weeks before the election.

After the election, the prices will jump. 2009 is the year of the dick in our ass. You can take that to the bank

Looks like USDX is having a reversal, dropping below 80 to 79.4 at the moment. Oil is bouncing up a little to $102+.

So, was $100.10 *it*?

Keep an eye on fuel inventories. Right now it looks like the worse case scenario for the refiners on the Houston ship channels and Galveston Bay. Stree flooding was already occurring at 0830 this morning. All the refiners will be hit with at least a 10' surge if not considerably more. The Exxon Baytown refinery (largest is US) could be hit the worse. Most of the workers live here (mandatory evac) in Baytown with me. Many will probably take many days before the get back to the plant.

I'll gives some updates tonight until we lose elect/cable.

ROCKMAN it sounds like you’re at ground zero; good luck and keep us posted if it’s possible!

Good luck Rockman... Hope to here lots of juicy details on complete infrastructure destruction and mayhem...

Stay safe.

Rockman get some good pictures of exxon baytown once its underwater.

we are almost down to 100 dollars a barrel
this must be the biggest oil drop in the history of trading oil

Oil trading pre market below $100. Gasoline down also.

The power of de-leveraging is creating a major disconnect from on the ground reality.

USDX does a trend reversal and drops below 80 to reach 78, gold goes up over $780 .... and oil falls below $100 and has hit $98.46.

Now that's what you'd call divergence!

$94.13

Woohoo. We're going for $90, or what?

It's going to be very expensive for all the shorts to settle at the end of the month! I'd be suprised if there's enough oil delivered to Cushing to meet the contract demand.

Margin calls causing a complete dislocation in price here. It also doesn't help that much of it can't be refined cuz of the storm.

I was wrong about $100 being the bottom.

It might have been in a free market.

I'm considering that manipulation is going on.

The last two large declines below SERIOUS resistance at $110 and $100 both happened in "AFTER HOURS" trading when trading is very light.

If they can sell enough contracts when the trading is light to cause the price to go even a dime below say $110 or $100 then automatic sell orders put in to prevent loss by innocent traders will get triggered selling innocent traders' contracts doing the rest of the manipulators work.

That could be what we saw right after Gustav when trading opened after Labor Day and now in this premarket action today.

Both times these drops happened after things that would also be seen as "dollar negative" and "oil/gold positive". The first drop through $110 was when FANNIE/FREDDIE were nationalized. The second is now when there is a threat of bank armageddon.

I think the resistance at $85 might be the next big resistance level. We traded between $85 and $100 for months before finally breaking through $100.

Chuck

I think we're going back to where we were in summer 2007, around $75. We might even overshoot below that.

Then buy those three to six-year options at $150!!!