Tuesday August 21, 2012
Check out the article onpage C4 of today's WSJ. Then review the graph from Year 2008 in our post
Stair Stepping to New Heights. In that graph we noted that peaks were recorded first in the Dow Industrial, then then the SPX and finally in Commodity prices. Looks like we are no track for a repeat.
Gasoline pulled back from the 125 day MA, amazing how those MAs work isn't it? And it retreated to the 200 day MA. But as the article cited above suggests, we look to be on track for higher prices. 3.4 would be thirty cents higher but at the pump taxes and such make the retail price higher.
This is actually another puzzle piece that we are on the right track. Higher energy prices always accompany higher stock prices, this is evidence of a positive social mood about the economy.
This weekend I mentioned the possibility of an Israeli attack on Iran. That of course would spike prices higher but the charts cannot provide a clue as to whether that will happen.