Comment on my September 14 prediction: Seeing how we saw hikes across the board on Wednesday, September 16, the prediction was WRONG.
Tuesday, September 29, 2015, 9:15PM: I’ve been reading a bit this week about Glencore, a giant commodities trading firm that has been falling apart this summer. This company is an example of the kind of speculators that play havoc with the oil and other markets, and there is some evidence that the collapse in oil prices (and lately some stock markets) may be connected to some of their failed trades. That Glencore is starting to percolate in the media (my favorite quip is “You can’t spell Glencore without Enron“), I am starting to wonder if this is the beginning of the end of the bear market in oil. In fact, oil prices hit their low of the year on August 24 and have been slowly rising since. Gas prices started turning around on September 16, and now there are hints of another price hike in the works. Estimating a price-to-retailers of $2.37 a gallon, and with prices as low as $2.31 in the Grand Rapids area, I smell a hike coming on Wednesday or Thursday. $2.59 a gallon?