On a recent front page of Yahoo Finance there is an article titled “As the Stock Market Comes Back Commodities Tell a Scarier Story.” The article states how rare it is for markets to rally when commodities do not. There is no back up for the statement. Then the expert, Dan Dicker of MercBloc, states how there is never a rally without coal prices surging when the weather is cold as it has been. That may be true, and if we were living in the past it would worry me, but currently the US government has done just about everything to eliminate coal as a fuel for heating and electricity due to the resultant air pollution. So, of course, coal for fuel is down. The price of gasoline has dropped in the last few weeks because refineries are producing so much heating oil from crude that the by product (gasoline) is in abundant supplies. I am surprised that the “expert” did not mention that. Sometimes it is good, to look behind the curtain and see what substance there is to an expert’s market rant!
