This is going to go along with the post I did the other day on oil and energy stocks. Notice in the chart that the 10 and now the 20 DMA are in the process of crossing above the 50 DMA.
We all know the Fed is desperately trying to devalue the dollar and create inflation. Heck the US is broke. The only way to pay our debts is to print money.
I don't know if the Fed is going to be successful or not. The deflationary forces aligned against them are huge. They may be temporarily successful.
If that's the case oil may be just beginning to respond to the inflationary pressures of the Fed.
Remember last year it was the Fed's ignorant inflationary efforts to stop the credit bubble from imploding that spiked oil prices. That was the straw that broke the camels back and sent the economy into a downward spiral.
Apparently Bernanke hasn't learned a thing. Now oil may be fixing to "teach" him the lesson again.
I dare say the only thing positive about the last 6 months has been the collapse in gasoline prices. If the Fed again spikes the price of energy with their crazy monetary policies it is going to intensify this, I can't even call it a recession with a straight face anymore, depression.
When will some one get these people out of power before they destroy what's left of our economy?
What's next, another tax rebate with gasoline at $3.00 per gallon so we can push it to $5.00 this time?