Andrew Gordon in Investor’s Daily Edge says the Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) saga is more suited to a Hollywood script than the financial pages. Except, unlike the movies, it really is too late to save the lead roles. Andrew says the government is running out of alternatives to fully nationalizing both organisations…

Crude oil prices fell for a fourth day today in New York trade.

News that Tropical Storm Fay will miss rigs and platforms in the Gulf of Mexico and the stronger dollar weighed on the black goo. Crude oil for September delivery touched $111.64 a barrel on the Nymex.

Already investors are talking about oil falling as low as $90 a barrel. But don’t bet on double-digit oil prices, says Andrew Gordon in Investor’s Daily Edge. Demand is set to jump, Iran could erupt at any time and there is strong support for crude at the $110-a-barrel mark…

In about a month, sentiment went from extremely bullish to extremely bearish. Did the fundamentals of oil supply and demand change that fast?

Yes they did.

On the supply side, Saudi Arabia produced 145,000 more barrels in July than the month before and OPEC produced a million barrels more than it did in April.

On the demand side, the U.S. is consuming 2-3 percent less fuel than last summer. China imported seven percent less crude in July.

Asia as a whole is still growing but they are cutting back on their oil subsidies which are reducing demand and Asian growth is showing cracks.

For example, Japan and Australia’s economies have slowed down appreciably.

In the meantime, European countries one-by-one are reporting deteriorating economic growth.

Combine that with a strengthening dollar, and you get the Great Crude Price Pullback. So, how far down can oil fall?

Whoa. Before the price of oil gets past $100, it has to go below $110. And that’s not a gimme.

It’s not only a support level where prices have topped and bottomed before this year, it’s also where the 200-day moving average is resting now. Plus $110 is a pretty big round number. Not quite as round as $100 but round nonetheless.

If the price does get past $110, it still has resistance to overcome at the $100 and $85 levels.

But first thing’s first. Let’s see what happens to the price of crude once the Olympics are over.

Let’s see what happens once China lets the million cars it kicked off the road back on… once it restarts the hundreds of factories it shut down… once it gives the green light for power plants to charge back up and begin polluting the environment again.

And let’s not forget that it’s hurricane season. Or that the Iran talks are heading for another dispiriting breakdown.

Double-digit crude prices? It sounds nice, but don’t count on it.

Source:  How Much Lower Can Crude Prices Go?

The dollar is rebounding thanks to eurozone weakness.

On Monday, declining crude oil prices and rising US stocks helped push the dollar to a six-month high against the euro. Today, the euro lost more ground against the dollar. It fell to $1.4900 after a new report showed that the US trade deficit contracted in June.

Can the dollar continue its climb? Andrew Gordon in Investor’s Daily Edge says the short-term outlook is good for the buck. It could rally by as much as 15 percent. But expect formidable resistance soon. More from Andrew below…

“Sure, I’ll buy it at that price. It’s going to be here in 10 years. And it’ll still be here in 100 years.”

You won’t see really exciting market growth anywhere in the developed world right now. There’s not even much to be found in emerging market economies.

But there are still countries with over 6% growth, says Andrew Gordon in Investor’s Daily Edge. Some of them, such as Afghanistan and Angola, aren’t the safest places in the world, however. And they are difficult to invest in directly.

A way around this is to find an American company doing business in these high-growth economies or a foreign company listed on a US stock exchange.