Crack High

US was world’s largest petroleum producer in November, surpassing Saudi Arabia for first time in ten years by Mark Perry.  The measuring stick is the misleading liquids, yet the occurrence is impressive nonetheless.  Interesting fact:  U.S. liquids production is just shy of dry NG production when measured in btu’s (british thermal units).  Absolutely no one saw that coming a few years ago.

Meanwhile the Dow Jones Industrial Average closed at an all-time high yesterday.  Stock markets could be off the the races.  This three days after the sequester.  We know it can continue for quite some time.  (Off topic: Obama is not doing himself any favors while Investors Should Ignore Politics.)

Perhaps conditions reflect the foothills of a minor crack up boom.  (Also here and here.)

Commentary from gold stock land:

First, last May ISA noted the then bottom here and here.  But far be it from us to predict prices.  After all, it seems the entire goldbug community has been calling bottoms during the entire current slide.  The shares are bombed out, yet the true believers haven’t budged.  Casey Research is not my favorite source, though the 1976 episode seems similar.  Some pieces for a bottom and reversal are in place:  Depressed prices and sentiment.  Breaking through the downside bollinger band, followed by lower lowers inside the bollinger band; an RSI divergence.  The missing piece for a trend reversal yesterday was a gap down opening.  We’ll keep watching.