Sorry limited time this AM – No time to format.

The Truth About the War

Finally, after years of Republican stonewalling the Senate’s Intell Report has become public. It is the lead editorial of the NYT. Finally we are getting the facts about of all the propaganda, fabrications and lies that sold the American public on the Iraq war. Last week Scott McCllelen, Bush’s press secretary revealed his insider’s view and now the Senate has published the facts. Most Update readers of are already aware of that the causes of the Iraq war were fabricated propaganda. But the more sources that bring these injustices to light the better it is for our country, democracy, morality and the world.

From the NYT

The report shows that there was no intelligence to support the two most frightening claims Mr. Bush and his vice president used to sell the war: that Iraq was actively developing nuclear weapons and had longstanding ties to terrorist groups. It seems clear that the president and his team knew that that was not true, or should have known it — if they had not ignored dissenting views and telegraphed what answers they were looking for.

Over all, the report makes it clear that top officials, especially Mr. Bush, Mr. Cheney and Defense Secretary Donald Rumsfeld, knew they were not giving a full and honest account of their justifications for going to war.

NYT editorial

Stocks

Everything moved higher. Oil prices gushed higher and stocks exploded to some of the best gains of the year

Obviously something is not right when oil prices rise 4.49% and major stock indexes also explode about 2% higher. You would expect stocks to fall if oil rises and visa versa. Volume was a bit above average for both stocks and oil – so volume did not confirm either move. The big question is which one will continue to go higher?

Reading the tea leaves – Answer – In the short term stocks should go up and oil go down. Oil prices are so extended above their 200 day or 40 week moving average they need to take a breather.

Every technical analyst on the planet knows that oil prices are way over extended. What probably happened yesterday is that a lot of traders (traders as opposed to longterm investors) got caught shorting oil and had to buy to cover their shorts when oil gushed higher. 4.49% is a huge move for oil. There was no major fundamental of story behind the price increase. Best guess is a bunch of major oil speculators colluded to drive oil prices higher and when a resistance level fell everyone was thrown into panic.

Short term it looks like energy related ETF are going to flatten or fall because oil prices are so over extended are way over extended.

NEUTRAL – Long Term Outlook

Barr

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