According to Dr. Kent Moors There is an easy way to find out where the
market thinks a particular sector is heading: Check out the movement of futures
contracts held by top hedge fund managers.
These days the signal is clear and pointing in one direction. It's in
energy.
Reports have recently surfaced that hedge funds are moving
into commodities in general, and energy commodities in particular. What's more
these moves are more bullish than at any time since midsummer.
The reason is the same one that we have been discussing for
several months. Demand is coming back more quickly than anticipated. Energy spikes usually start that way.
Indicators of market resurgence seem to rush onto the scene, catch analysts by
surprise, and the acceleration begins…
Two elements have emerged over the past several days that
finally require the pundits to catch up with us.
First, it is becoming impossible to ignore what is happening
in the U.S. and China . Both
markets are moving up, with that direction intensifying of late. In the U.S. , forward economic indicators
are developing into a bull market signal. But it's the second factor that everybody will
be talking about this week…..
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