Oil Bubbling Out of the Ground
Research for Online Investors

by John Dalt

6/16/09

It becomes hard to write my daily missive when the market does what I have been expecting it to do for the last few weeks.  I have been short in the past, and had to close losing positions when the market went higher.  It is still depressing to watch stocks go down.  You know they will come back as buyers enter the market, but your “rat brain” wants to run and flee the carnage.

The buy the dips crowd showed up and tried to stop the losses, but were swamped in the last 30-minutes. The Dow closed down 107, the SP500 at 911. We probably have lower to go. I am looking to 880 for strong support. This level has acted as a floor under prices in the last month on seven different days.

There is news all over the world today.  Iran has crowds in the street protesting the re-election of Ahmadinejad.  The ruling mullahs have authorized a partial recount of the votes.  Seven people were killed at a rally and Iran has banned foreign journalists from leaving there offices.  Ahmadinejad traveled to Russia for an economic cooperation council.  Russia and China congratulated him on his re-election.  Reuters has a good article on the unrest in Iran.

ABC News is going full court to help OH! Bama promote a take-over of the nation’s health care system.  Next week on June 24, World News will be broadcast from the White House.  ABC will carry a prime time special “Prescription for America” from the White House.  It seems that to get this access to the halls of power, ABC excluded any dissenting views.  It looks like the full court press is on.

When mom said medicine tasted bad, but was good for me, I believed her. Mom loved me, OH! Bama is a politician and a socialist. Bad medicine from a Chicago politician? No. I would not trust Joe Stalin to give me medicine, FDR trusted him. What did Eastern Europe got out of the deal, fifty years of an Iron Curtain. Here is the letter the Republican National Committee sent to ABC, with more background on the story.

A representative of the White House made the accusation that Hurricane Katrina was made worse by our nation burning coal on CNBC today.  Wow.

California has a few more weeks before they are broke.  If Washington can keep their hands out of the stew; we will get to see Federalism at work.  Each state competing with the others for citizens, jobs, tax base, and keeping their financial house in order.  California will have to offer a secure investment landscape or bondholders will turn their back for other states that are safer.

According to the Times of London, British Airlines has asked 40,000 employees to work free for one month in a “fight for survival”.  The unions have not taken to this idea, as one would imagine.  Here is a good article about British Airlines financial woes.

On June 29, Iraq will open bids to develop and operate six oil fields and two natural gas fields.  In 1972, foreign companies were kicked out of Iraq.  Some of these fields are some of the easiest in the world to develop.  In Iraq, the oil still bubbles to the surface in places.  Iraq is estimated to have as much oil reserves as Saudi Arabia.

We have identified a play on this concession in the SwingTrader. Our profit target is outlandish. You can join us for a couple of trades a week, and great returns. You can read the Sunday Times of London story about Iraq Oil. There are other articles here; you may want to read them all. Our newspapers bring us stories about drivel, the Times does something right. What is an oil concession worth where the exploration risk and costs are so low?

Of course, you could join us in the SwingTrader, then you wouldn’t have to read six different papers, check websites, do research, and watch TV till you know all the anchors like your family.  It is a good deal for what we do, and you will make money, or we will give your subscription back.

California downsizing, after budget cuts.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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