---
title: "Crack High"
url: https://independentstockanalysis.com/crack-high/
description: "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…"
published: 2013-03-06
updated: 2013-03-06
---

# Crack High

Published 2013-03-06

Posted on

by

J.J. Butler

US was world’s largest petroleum producer in November, surpassing Saudi Arabia for first time in ten years by [Mark Perry](http://www.aei-ideas.org/2013/03/us-was-worlds-largest-petroleum-producer-in-november-surpassing-saudi-arabia-for-first-time-in-ten-years/#.UTYQNK_qaRs.twitter). 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](http://ibankcoin.com/chessnwine/2013/03/05/the-chase-is-on/). This three days after the sequester. We know it can continue for quite some time. (Off topic: [Obama](http://abcnews.go.com/blogs/politics/2013/03/white-house-tours-cancelled-due-to-sequester-cuts/) is not doing himself any favors while [Investors Should Ignore Politics](http://www.ritholtz.com/blog/2013/03/investors-should-ignore-politics/).)

Perhaps conditions reflect the foothills of a minor [crack up boom](http://mises.org/daily/4016). (Also [here](http://mises.org/humanaction/chap17sec8.asp) and [here](http://mises.org/humanaction/chap17sec18.asp).)

Commentary from gold stock land:

First, last May ISA noted the then bottom [here](https://independentstockanalysis.com/reversal-2/) and [here](https://independentstockanalysis.com/goldbug-bottom-calling/). 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](http://stockcharts.com/h-sc/ui?s=GDX&p=D&b=3&g=0&id=p81592273523). The shares are [bombed out](http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/4_James_Turk_-_The_Single_Most_Important_Chart_For_All_Of_2013.html), yet the true believers [haven’t budged](http://kingworldnews.com/kingworldnews/King_World_News.html). Casey Research is not my favorite source, though the [1976 episode](http://www.caseyresearch.com/cdd/gold-over-just-1976)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.