Oil looks like it finally reach its recent plato, it might not go further than 108.50 but if things change it could shoot up to 110, that is at least according to me. I doubt oil will stay at 108 – 110 for long.
Here is why:
All is not going well in China. The economy and everything along it that needs oil is on decline.
In Egypt things have not changed and the fears that the Strait of Hormuz will be shut is basically null.
In the US dollar is having a hard few days that might continue.
What is the stock market telling us today? Well for me personally I think things are ok for now but undernearth all the uptrends there is a growing problem. Credit crunch.
We’ve heard that word and it was abused so much on new channels, especially British news channels that we are almost tired of it. Fact is, underneath all these uptrends there is a massive credit crunch coming.
Look for instance at South Africa, massive debt nationwide, inflation is said to be at 5.5% but that cant be right. People are still buying gadgets, tech, clothes etc mostly because stuff has become cheaper than food.
Personally i think things are much the same way right before the 2008/2009 crash. Although many will disagree.
Gold has jumped over the $1300 mark and is still in its biggest rise in years. Gold is now trading at around $1316 and no breaks have been turned on just yet. At the opening last night (South Africa) Gold quickly jumped above the $1300 mark, the mark most people have been waiting for.
Gold is one of the most emotional commodities and stocks to follow and the reason for this is, when people have no trust in their currency they immediately start buying gold.
If you though Google had a bad day in stocks then you might not have seen Microsoft. The computer giant fell a whopping 5.35%. Forecasts were way off and Microsoft is blaming the slump in the PC market. Either there has to be some good MS Window games in the near future or some other drastic plan to bring back the software giant. The biggest knock was against their $900m mistake called the Surface RT computer.
Gold is showing bottom signs after falling to less than $1200 in June. Gold that fell from the $1900’s high with bounces as high as $92 during it fall might now be heading up again as bulls get ready to follow the gold to where it fell from.
While some analysts and bears predicted a $1000 gold that now seems to be left in the dust. Bernanke’s speech is set for this week and investors are really unsure which direction he will lead the US economy.
Last week Federal Reserve Chairman Ben Bernanke said that the central bank will not immediately raise interest rates once unemployment fell to the target of 6.5%.
Even though these past few days before the weekend Gold had its highest percentage climb in recent times there still is that risk awaiting the soon expected US retail data.
Julius Malema, the newly and self elected ruler of the new South African party called Economic Freedom Fighters said on Saturday that the EFF will be South Africa’s new ruling party.
Julius Malema who is still facing multiple corruption and other criminal charges said that his new party will “take the government” and “our land”.
In 2009 the new COPE party said the same but today there remains very few loyal supporters compared to 2009. The biggest point of Cope was that they took members away from the ANC and now 4 years later and South Africa might see the ANC downsize again depending on the success of Julius Malema and his party.
There is no better way to say it but the blogging phase in South Africa is finished. I knew a lot of bloggers, a lot of bloggers but now I only know a few that is left. Heck, there are thousands of bloggers in South Africa but not like a few years ago. Today’s bloggers blog for the sake of business, not hardcore blogging like it used to be.
Amatomu, Afrigator and other similar sites are all dead and the internet sounds like a cabin cricket lost in the woods.
How many people do you know that still blogs in South Africa? Probably only a handful.