WTI oil is trading higher again this morning by 0.66 cents to $107.42 a barrel. Most traders and investors would think that high oil would be a negative for the stock markets, however, that has not been the case as oil and the stock markets have actually been rallying higher together. At some point something will have to give. Until that time oil continues to approach its 52 week high which is $108.25 a barrel. The United States Oil Fund(NYSE:USO) is trading higher by 0.30 cents to $42.90 a share. The United States Gasoline Fund(NYSE:UGA) is trading higher by 0.03 cents to $50.39 a share which is a new 52 week high. The average price of gasoline at the pump in the U.S. is now $3.60 a gallon and that is up 0.80 cents from a year ago.
Every morning we talk about the Middle East and North Africa. This morning nothing has really changed yet. There is a rumor that rebel forces will agree to a cease fire if Gaddafi agrees to stop his military forces and allow peaceful protests. Stranger things have happened I suppose but this one is hard to believe. The United States has said that they will not put U.S. troops on the ground. We shall see about that one. Other nations in turmoil are Bahrain, Yemen, Egypt, and Syria.
The U.S. Dollar Index is actually catching a strong bid higher this morning. The positive job news should cause the U.S. Dollar to strengthen and help to increase the yields on the 10 year T-Note. Yesterday, a Minneapolis Federal Reserve member said that the Fed funds rate may need to increase by 0.75 basis points by the end of the year. We shall see if these guys are serious or if they are just sending out more rumors to try and help their agenda as gold and silver make new highs. Remember gold and silver are a central banks worst enemy when you are in the business of creating paper or electronic money. Gold and silver are trading sharply lower this morning on the back of the stronger U.S. Dollar.
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