It was a pretty ho hum day. The day started out reasonably strong as B of A came out and announced much lower write downs than the market had anticipated. Financials were up early, and carried the market a bit higher. The larger financial institutions are not doing as badly as the market would have you believe.

As usual, the market has totally emotionally over reacted to what people believe might be the worst case scenario.

Oil sabotaged a low volume day a bit as it rose 2 points. However, I know of a number of technicians who believe oil might have broken it’s uptrend line, and we could be in for a little relief from the unbelievable run up in that particular commodity.

As I have published in the past, I don’t know where oil belongs, but I do know oil’s recent parabolic rise in unsustainable, and something is going to change the pattern.

For those who believe the high price of oil is a death knell for the US economy, you would be wrong. I have friends who run businesses in Bulgaria, and they have been paying $8 per gallon for years, and their economy is growing at 10% per annum. It’s simply an issue of “getting used” to the new reality of oil prices.

There will be a 10 year bubble in alternative energy stocks- more on that in future editions.

We’re in the teeth of the most boring part of the year. Go play golf. Have fun with your kids. Things will change in the next month or two, and I hope for the better.

I know there hasn’t been a lot to chew on out of EFSF of late. I have been briefed on developments at the company. The DR program is being fine tuned, and they will be back out there soon with a bigger commitment.

There was an article that appeared in a recent edition of Equities Magazine. For informed followers of EFSF, there isn’t much in the article you don’t know. However, FYI, here’s a link. You can find it in the archive section on EFSF as well:

http://www.otcjournal.com/efsf/media/efsf_nhc.pdf