8 May 2008 - 23:14Market Commentary 5/8/08

Another day another all time high for oil. The UK and ECB continued to keep rates on hold which may have contributed to higher commodity prices today since the currencies of major oil importers went up. Europe and Japan are forced to buy in dollars and there currencies went up against the dollar so if oil were to stay the smae price then it is actually cheaper for them. Hence when it goes up a little oil is just keeping pace with the currency of some of it’s best customers. Of course oil is not going up just a little and all this violence in Beirut is not helping to cool off the already red hot oil market but I was just pointing out yet another reason why oil is gushing right off the chart. Surely gold is benefiting also from this turmoil in the mid east and skyrocketing crude as well.  The Dow is resting at support  right now,  support which has held for the  last  two weeks but I think it is finally ready to crack it.  Just like GBP/JPY looks like it is ready to crack it’s support which  is being tested for the fifth time today  right now.