Since it seems the fate of the free world depends on this stupid healthcare vote, let’s talk about something – ANYTHING – else!
Below is the front month of crude oil. As much as I’d like it to plunge into the abyss, what I “like” doesn’t have much say-so in market direction. It seems to me that the commodity is steadying itself at the trendline and could be preparing for a turnaround back to major resistance at about $52.30 or so. Just a thought.
For equities in general, though, I would simply offer this headline on ZH that just came up:
Crude oil is breaking down even more beautifully than I dared dream, with a bearish engulfing pattern so far this morning. Who knows, maybe we’ll break that lower trendline with some gusto.
Finally, crude oil has cracked its trendline. Huzzah, Slopers!
You’ve probably had your fill of bearded women on your screen, so I’ll just put up this chart and point out again how important the crude oil trendline is. If we can break 47.75 this week, it’s off to the races, boys ‘n’ girls. I’m long ERY and short a bunch of individual energy stocks.
I’ve mentioned crude might fight its way back to $52 before falling again, but it might not even muster that much strength. Using the USO as a guide instead, I’ve put a horizontal line at a gap that I believe is also potential resistance.
We all have to sit around and wait for the old biddy to show up at 11:00 a.m. PST (2:00 p.m. EST). Well, she doesn’t actually show until half an hour after that, but the big announcement (e.g. “up another .25%”) is slated at the top of the hour. Here are a couple of charts to contemplate as we circle above the airport………
First off, the NASDAQ isn’t exactly participating in this morning’s equity rally with a lot of gusto; I continue to contend that the broken trendline means something:
Back on February 10, I wrote a post called Lake Erie, and I did a post for my beloved Slope Plus members called Return to Lake Erie, in which I suggested that energy stocks were going to head lower, and noted I was going to buy the triple-bearish ETF symbol ERY (my precise words on February 10th were Yesterday I start accruing a sizeable position in my IRA account of ERY, the triple-bearish fund based on energy stocks. So far, so good.) I would say this has been going pretty well, as the arrow “buy” point reveals. We’re up about 25% since then.
I confess to getting a little nervous with crude oil approaching a fairly important trendline, but I’m just going to tighten my stop and hang on. Congrats to others in this trade.