ELAM: Oil prices firm

Nearly four-fifths of U.S. energy production in the Gulf remained offline 10 days after Hurricane Ida.

Storm’s Fallout Cripples U.S. Oil Output, Sept. 9, 2021

Prices have firmed as result of Hurricane Ida. We had thought price would work lower, but that has not been the case. After hitting a low of 15%, the some 41% of energy stocks are now in bullish position.

We were correct about overall stock market weakness into September. The most reliable indicator, the NYSE Advance-Decline line has been moving sideways since July. The broader market is far weaker than the weighted average major indexes indicate. An example is that the percent of stocks over their 150 day Moving Average has fallen from 95% in April to 65% today.

We have remarked that increasing negative social mood does not support the high stock valuations. Here are a few recent examples of explosions.

President Biden tells 18 Trump appointees to Military Academy Boards to quit or be terminated. Kellyanne Conway refused, prompting this comment from AOC, “When you’re fired, don’t let the fascist victim complex hit you on the way out.” Is that called reaching across the aisle?

The Republican Texas Legislature passed a law banning all abortions after six weeks of pregnancy. There is no middle ground on this issue with Democrats for the procedure anytime. Expect more heated exchanges with no positive outcome.

America never got close to Jimmy Carter’s 20% of energy from solar by year 2000. So Team Biden plans 44% by 2050; price tag $562 billion.

Wiser minds in the wake of Hurricane Ida note it would have been impossible to drive electric vehicles through high water. Worse, it would have been impossible to re-charge them with power outages across Louisiana. Will the Energy Secretary please take note?

Taliban 2.0 (a professional government according to our Secretary of State) disperses women protestors with violence.

Biden’s approval rating falls under 40%.

President Biden is far more angry at the unvaccinated than the Taliban. Anger certainly predominated Thursday’s speech. Oh, no vaccination requirement for those 200,000 a month crossing the border.

With the narrowest majority in the House and 50/50 in the Senate the Democrats plan the biggest tax increase and entitlement cram down ever, all in the next 17 days.

Portland, Oregon bans doing business with Texas.

Social mood is at best a windsock, not a crystal ball. But only eight months into Team Biden, mood is trending negative.