Friday, October 07, 2005

The question.

I'm not much of a chart guy, but many of the energy stocks I looked at appear to be right at what I would consider to be the closest support level (they had gotten extremely extended over the past few weeks, which is always dangerous), so hopefully they find support today. But keep an eye on demand.

USAToday: Oil Pumps Up Returns.

AP: US Consumer Apprehensive About Economy.

MarketWatch: Crude bounces back over $62.


Traders are worried that "rising prices are eating into demand, or worse, may have already tilted the global economy toward contraction," said John Kilduff, an analyst at Fimat USA.

"Our view is that the demand destruction we are seeing is real, but it is too early to say whether it will last or not," Ed Meir, an analyst for Man Energy.