I’m always interested in how Government ties in with the markets. It’s been a bit of a hobby of mine, along with WWII battles, over the past 2-3 years and there’s no bigger tie then Goldman and the Government then recently…and BOY is it bigger then we know! In my recent late night surfing I came across Greg Roy. Greg recently released a special report with the same title of this blog post, Goldman Sachs’ Next Slaughter of the Stock Market Lambs, and being the digger I am, I read the full report and cold called him. I asked if I could repost a part of the report for my Trader’s Blog members. After some convincing he said ok.

This guy knows what he is talking about… Here is an exclusive excerpt from his newly released report Goldman Sachs’ Next Slaughter of the Stock Market Lambs.

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Goldman Sachs

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Here's how it was reported, for example, in the Wall Street Journal:

Reaction to the Wall Street bailout and frenzied last-minute trading in the oil market sent crude prices soaring by more than $16 a barrel, the biggest one-day jump ever.

The late-day spike, which shoved oil up 16% to $120.92 a barrel on the New York Mercantile Exchange, offered an illustration of Wall Street's hard-to-predict moves amid broad market turmoil.

And here's what really happened.

The most striking thing about yesterday's oil prices was the disparity between different futures contracts. The October contract, which expired yesterday, did indeed settle at $120.92, up more than $16. But oil for delivery in November closed at $109.27, an increase of only $6.62, and longer-forward contracts saw an even more modest increase. Unquestionably what was going on was a short squeeze, in which traders who had sold the October contract short were scrambling

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Recently, we discussed oil prices and their affect on the oil & gas industry with Zacks senior analyst Sheraz Mian. He helped give us some well-needed perspective, as well as his top picks within the space.

Oil prices have been steadily coming down in recent days – from the all-time high of around $147 to under $110 at present. Are we seeing the bursting of the oil bubble?

I wouldn’t call crude oil’s strength of the last few years as a bubble. While some ‘irrational exuberance’, to borrow a phrase from the former Fed Chief, could have been at work in oil’s doubling in price over the past year prior to its recent pullback, there are nevertheless sound fundamental reasons for the commodity’s historical strength.

The mismatch between the growth rates of supply and demand has been the driving force behind the current oil price cycle. The current pullback reflects

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