Charting Oil: Breaking Down - Raise Rates, and Break Its Back

07/30/08 10:39AM EDT
This is THE chart with the sensitive inverse relationship to my last note (rising US interest rates and the US Dollar). Crude Oil is in a bearish "Trade" position under the $127.20 line, and a bullish one above that.

If Bernanke raises rates he can break the back of the futures market, which continues to flag contango in expected prices. I don't see any credible support for crude oil until $102.65. C'mon big Ben, let's get on with it!

KM

(chart courtesy of stockcharts.com)
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