I have spent the majority of the day looking at commodities, and it is becoming increasingly clear that a correction is due in the sector along with energy.

As we get closer to the election in November, energy prices will meander lower. Unlike 2004, however, we may not see energy rebound as quickly. News of a slowing economy could bring a sharp pullback which may last into the winter months.

Now that the small investor has jumped aboard the energy train, big traders will look to take profits. The game is fairly simple, wherever the smaller investor thinks there are sure profits; this is the area to be careful of (I.E. - NASDAQ, Real Estate, Commodity Funds, Hedge Funds etc...).

As far as energy and commodities are concerned, the longer term bull market is intact. I will be looking to increase my exposure in both areas on sharp pullbacks.

You see it every day like I do. People driving a Lexus or BMW, and without a second thought, the car has a sticker on the back advertising to the world that they bought the vehicle second hand. If I really wanted to impress someone, I certainly would remove the used car sticker off the back of my car first.

By the way, Paris doesn't buy her vehicles second hand.

Sure, some legitimately make enough money to drive an expensive vehicle, and own an expensive home, but many cannot.

We have become a nation of show-offs. Whether it is the vehicle, or the house that has us strapped to our interest only or adjustable rate mortgages, the spending spree that has prompted the Paris Hilton lifestyle of the masses is about to come to an end.

Barron Hilton’s net worth is estimated to be at just over US $1 billion, of which Paris is expected to inherit a little over US $350 million. If consumers want to be like Paris, they should consider this. To accumulate $1 mi

I have made mention of the manic spending habits of consumers. The Baby Boomers do not have the same views about money as their parents. Many parents of "Boomers" remember the dark days of the depression. Unfortunately, their kids do not.

Parents who were born in the 1920's, and grew up in the 30's and 40's know the value of a dollar. Their kids who were born in the 50's and 60's, only know the good times.

Here are the results;

Personal Savings Rate

I have often said that most people only learn when pain is the consequence. Sometimes, even pain is not enough.

Insider Trades

Buys: Today

MEDTRONIC (MDT)

BONSIGNORE MICHAEL R B 3,000@ 46.28= $138,840
BRODY WILLIAM R MD PHD B 1,000@ 46.30 =$46,300
SCHULER JACK W B 25,000 @46.25=$ 1,156,204

WABASH NATIONAL (WNC)

GREUBEL WILLIAM P (Chairman & CEO) B 10,000 @12.70 =$127,000

NEW YORK COMMUNITY BANCORP(NYB)

FICALORA JOSEPH R (President and CEO) B 5,000 @16.24=$ 81,199

Buys: This Week

USG
SOV
JBHT
WYNN
PBY
LAMR

We are reiterating our call for lower oil prices from now through the November elections. We have reasons other than political for this call, but it seems as if a substantial risk premium has been built into oil prices due to hurricane season.

There are a few months left in hurricane season, so if a hurricane does enter the gulf, you may see a few sharp rallies along the way. This aside, we still believe that energy prices in the intermediate term are headed lower.

Here are some comments we have made on the issue;

August 11, 2006; "A Sharp Fall For Energy Ahead ?"

August 14, 2006: "We Need to Pay Closer Attention"

Energy stocks remain on the top spot for relative strength, but as oil prices have been making new highs, energy stocks have struggled to reach to peaks we saw in April.

onomy continues to slow, we may see the pressure