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About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Wednesday, August 10, 2005

Oil And Natural Gas -- Caution: Flammable

Sep. crude is printing $64.25 - 64.50 bl and gas is printing
over $9.00 mcf. On longer term charts these are spike breakouts
that signify an erosion of market discipline. There should be a
ton of overhead in each of these markets, and if demand can
continue to chew through it, the ball game will change to the
rankest of speculation and dramatically increased volatility.

From my perspective, we have moved beyond the pale of reason
and are watching these two markets move into fantasyland on a
speculative binge. As my Irish mom used to say, "The devil shall
take the hindmost."

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