The DOW hits 12,000: The Bottom is almost here

Don't believe it, think stocks will keep falling?  We called it at 13,000.  Thanks to the U.S. Congress throwing their weight around trying to bring down the price of oil, we have a great catalyst to push the DOW back up.  You think CEO's and Wall Street analysts hate being wrong, think of the ego's on Capital Hill being beat down?  Very soon Masters, we will rally, just you wait. Liberity and Justice for All!

Time to put that shopping list together again, best of breed stocks.

Today (6/18/08) Bush is even saying to lift our long-standing ban on offshore oil and gas drilling, saying the United States needs to increase its energy production.

He said that offshore drilling could yield up to 18 billion barrels of oil over time, although it would take years for production to start. Bush also said offshore drilling would take pressure off prices over time.

"In the short run, the American economy will continue to rely largely on oil, and that means we need to increase supply here at home," said Bush, adding there is no more pressing issue than gas prices for many Americans.

As you may know, yesterday we took some great steps to bringing down oil.  Chief federal regulator of U.S. oil contract trades announced yesterday (6/17/2008) steps to restrain price manipulation and excessive speculation that many experts believe are driving up gasoline prices.

Critics said the action, while welcome, should have come months ago. "Frankly they've waited far too long," said Mark Cooper, director of research for the Consumer Federation of America, a consumer advocacy group.

Testifying before the Senate Agriculture Committee yesterday, Cooper said that the rise in oil prices - about 39 percent this year alone - means that speculators are costing American consumers an estimated $1,500 per family in additional spending annually on gasoline.

The Commodities Futures Trading Commission - an obscure regulatory agency now in the global spotlight - announced the change in oil-trading regulations yesterday. The steps, while limited, would require buyers of U.S. oil contracts on the London-based Intercontinental Exchange (ICE) to abide by U.S. regulations for the first time. The exchange handles about 30 percent of such contracts. 

Food, I mean Oil for Thought:

Check out the volume on the UltraShort Oil & Gas ProShares (Public, AMEX:DUG), something is going on here.

In April it’s worth $40+ and just 2 months later it’s down to $26?

Should Congress, not if, but when, they pass some legislation that ends up lowering the price of oil. The news alone will send the DUG up $5 to $10 in minutes: 

UltraShort Oil & Gas ProShares  (Public, AMEX:DUG)

ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Oil & Gas Index^SM.  What are the companies in that Index?  A ton, but the biggest holdings are:

These bad boys have had their run, it's over.  Again read our article: DIG DUG: Oil Game Over

Oil futures regulators in Britain and the United States have reached an agreement to impose the first trading limits on oil contracts changing hands on a London electronic exchange. The agreement comes as some U.S. lawmakers call for more regulations to rein in speculators.

The U.S. Commodity Futures Trading Commission and its British counterpart reached a deal with ICE Futures Europe to impose regulations on West Texas Intermediate oil contracts that trade on the London-based electronic exchange within 120 days, the CFTC's chairman told U.S. politicians Tuesday.

The move will place more limits on trading of the U.S. benchmark WTI contract on the London exchange, which hosts up to 30 percent of total volumes. The New York Mercantile Exchange, which the CFTC regulates, has the rest.

Lawmakers said the lack of limits on the ICE exchange created what they call the "London loophole" that allows oil traders to evade U.S.-style regulations.