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Monday, July 6, 2009

Oil Breaking Down

Pre-market oil gapped down as much as $3.00 and is now trading below $64.00. That would put the price below the 50 and 200 day EMAs (red and green lines) and the trendline off the Feb 18th low.

The economic data from last week, with non-farm having the most impact, wiped out the "Green Shoots" theory.

Commodities and the whole "reflation trade" are especially reliant on "Green Shoots".

Now commodities are breaking down everywhere.