The target hopefully is the major resistance in the $14/$15 area, if that is taken and we have a good market, I would not be surprised to see the $20/$24 area. I often build a "cushion" during "uncertain times like now, which OI have on NOVN and now I have a safe stop just under $10 covered by that cushion.
Now to another subject, I think I just heard on the radio that the Lockerby Pan Am case was settled and Libya agreed to pay $270 Billions. If that number is not off by a factor of 1000, it has very large impact on the US economy. I don't know what the time frame of these payments, however, the total sum reduces our yearly trade deficit by fully 50%. Since our ballooning trade deficit is one of the major reasons for the dollar weakness. How Can Libya with about $15 to $16 B in foreign reserves come up with that money, I am not sure, they may put on the market their puny 143 Tonnes of gold (about $1.43 B). I would presume that arrangements will be made to make these payments over a long period, yet, the existence of such a very large liability of a foreign country to mostly US citizen is a big dislocation (every time you have an unexpected financial transaction of 1% or more of GDP expect some dislocations). This dislocation has to be positive for the markets (once it becomes final). Can any one shed some light on the terms and conditions of this transaction and its timing?
Zeev
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