-- Posted Thursday, 25 September 2008 | Digg This Article
| Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Treasury Secretary Henry Paulson told US lawmakers he's willing to accept changes in the Bush administration's plan to buy troubled assets from financial firms. Reversing his position, Paulson said he would address executive pay in his proposed $700 billion taxpayer-funded rescue plan for the banking industry.
``The American people are angry about executive compensation and rightfully so,'' Paulson, told the House panel today, departing from his prepared remarks. ``We must find a way to address this in the legislation, but without undermining the effectiveness of this program.''
Commodities and the US dollar will break from the current consolidation phase once the Federal Reserve plan is passed. There is speculation that the Fed may cut interest rates in October. If that happens then the US dollar will sink in the short term and commodities will zoom. I do not think the Fed will risk cutting interest rates as crude oil prices will rise over $125 in the event of an interest rate cut. We have the US presidential voting on 3rd November and the higher crude oil prices will be negative for crude oil prices.
NYMEX CRUDE OIL (1ST CONTRACT)
Intra day View: Crude oil needs to hold over $107 for $109.50 else it will fall to $103 and $98. Key intra day resistance is at $110.20
View till next week: If crude oil fails to break $112 by next week (3rd October, 2008) then crude oil will fall to $98 and $90 first.
THIS IS JUST AN EXCERPT OF THE MAIN REPORT
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice.Prepared By Chintan Karnani. Website www.insigniaconsultants.in
-- Posted Thursday, 25 September 2008 | Digg This Article | Source: GoldSeek.com
