Once again, I am inclined to go against conventional wisdom. We have heard so many oil bears come out of the wood-work over the past 30 days, that I can't help but bet against them.
After the November mid-term elections, I think you'll see the oil "magic" end, and with it, the stock market "magic" also.
I was born and raised in Detroit (Go Tigers!), and one thing we were taught at an early age is not to believe "shuck and jive". Since I believe what we are witnessing in the stock and oil market's are nothing but "shuck and jive", I don't believe a trend unless it is sustainable.
By the way, the definition of "shuck and jive" in the urban dictionary is "Not the whole truth; or manipulating something to get it your way". I do believe there is a lot of "shucking and jiving"going on.
Here are a some recent comments by T. Boone Pickens;
October 12, 2006
Boone Pickens says don't rest on your laurels today with inexpensive oil, it is going to $100/brl
Boone Pickens says oil will reach $70 before 2007Billionaire Dallas hedge fund manager Boone Pickens said crude oil will reach $70 a barrel before the start of 2007. He said oil would reach $100 a barrel by July 2007, reiterating a forecast he made in a July 25 interview that oil would rise to $100 sometime within the next year. Pickens said it will take a geopolitical event to cause it to happen but he said "weve got a lot of opportunities for those.
Believes we will see $70 oil again before $50 oil, based on the idea that OPEC, in particular Saudi Arabia, will remove oil from the market to defend $60+ oil. He also still thinks we will hit $100 oil in the next year based on a geopolitical event, of which there are of course several possibilities.
