08.15.07
Three Things to Watch 8-15-07
1. Watch the big investment banksters. Tomorrow is the deadline for redemptions of hedge funds in the 3rd quarter and if we see a sudden spike in put activity and shorts on any of them (especially GS and BSC) then start watching gold and silver. There is a play there and if the September and October puts that are out of the money suddenly skyrocket with activity, someone in the Caymans may well be telegraphing something as that’s how derivatives work; to cover their tails at the little guys expense.
2. Watch INVEST_91L probably soon to become Tropical Depression #5 overnight. Recon is in there now and it is basically stalled but pressures are dropping and that could indicate an intensifying system. Impact on anything forming that hints at Texas or Louisiana means the oil markets start to go nuts.
3. Watch the Fed. There is a major pickle forming for them right now and it’s called the reality of the real estate crash hitting home. First they had the idiocy of the banksters, then the greed of Wall Street to pile on top of it. Now they are recalculating the methodology of the FICO scoring system (Link to Story ) . If the Fed hints at an interest rate move in this environment it might be viewed as a panic move and cause more problems. If they do nothing, they will be compared to the 1929 Fed. And if they do cut and the markets rally, China starts to liquidate in earnest.
The 15th shall indeed be an interesting day…..
John Galt
Administrator said,
August 15, 2007 at 1:24 am
Shell Shuts Wells, Starts Evacuations in U.S. Gulf
By Reuters | 14 Aug 2007 | 06:24 PM ET
Shell Oil was pulling nonessential workers from the western U.S. Gulf of Mexico on Tuesday as the company prepared to shut in 5 million cubic feet of natural gas production off the south Texas coast, the company said.
U.S. crude futures jumped $1.11 per barrel or 1.5% to $73.73 per barrel in the minutes after Shell announced the evacuations.
Shell was the only U.S Gulf oil and natural gas producer removing workers ahead of a band of thunderstorms associated with a tropical wave about 90 miles northwest of the Yucatan Peninsula.
The Hurricane Center sent a U.S. Air Force reconnaissance plane to fly through the storm on Tuesday afternoon.
“We are watching the situation very closely,” said Marathon’s Paul Weeditz. “We have not evacuated any personnel nor have we shut in any production.” Weeditz said Marathon halted sending nonessential personnel to offshore sites.
Shell pulled 88 workers on Monday night and was planning to pull another 100 on Tuesday. Shell planned to shut in the natural gas wells in the North Padre 975 field.