Gasoline Prices back on the Rise

Call it a "stealth rally" as it has not been garnering any headlines, but unleaded gasoline futures have quietly been on the rise for the last three weeks after bouncing off of the $2.50 level and are now pushing back towards the important 50% Fibonacci retracement level of the entire decline from the late March peak .

Coming at the same time that we are seeing the grains soaring higher (see my recent article on this), it is soon going to be packing a one-two punch to consumers between food and energy costs. Prices at the pump had been coming down giving some relief to drivers and the transportation industry in general but this advance threatens to pull the plug on that soon enough if price pushes past the $2.96 level on this chart.

So let's take an inventory of what we have thus far - An absolutely horrendous employment picture, rising food prices, rising gasoline prices, underwater mortgages, and an Administration that is totally clueless when it comes to understanding the factors that contribute to job creation and a growing vibrant economy. Is it any wonder that retail sales are tanking and the economy is taking a nosedive? Feeling better yet????