Crude oil futures have rolled over into the next month (October 2016, symbol ‘V’), and since I was starting with a fresh chart, I thought I’d lay down some Fibonacci retracements. They aren’t bad, so let’s see if oil behaves itself vis a vis the resistance I’ve highlighted below.
Crude oil’s strength has been contained (so far, at least) by our friendly local Fibonacci line whose level is $45.14. The high for this session for crude oil………$45.15. If it holds, cue spooky music. If it’s breached, cue eye-rolling. UPDATE! Cue eye-rolling. We’ve breached the level. It’s no-man’s-land at this point.
As expected, crude has been fighting its way back, and this morning it made things easy by nailing retracement perfectly (see green tinted area). I guess the chatter about a new OPEC meeting (remember those?) gave things a boost. I’m staying at a distance, however, since I think strength to the next level higher (about $45) is still possible, as the meaningful topping pattern (magenta tint) is still one Fibonacci level higher.
First off, I must complain mightily to the market gods: Kuroda disappointed the market. The USD/JPY is collapsing. It wasn’t that long ago this would have meant a huge selloff in equities. How about today? Well, we got a little weakness at first, but now – – nope. ES green. TF green. NQ green. Tim’s stomach……green. Nothing is bringing this market lower. Nothing.
I lightened up swiftly on energy shorts this morning, because even though crude was down about a full percentage point (yet again), it tagged its Fibonacci retracement, so I figured it was time to scurry away.
Bonus Image: the pure, sinless future head of the world (which is what last night’s pure white pantsuit was all about). (more…)
Well, now that I’ve recovered from the 20 minutes of the DNC I watched tonight (including Earth’s Worst Rendition of “Bridge Over Troubled Water”), I thought I’d toss one last post into the hopper to end the day: Apple. They report after the close tomorrow, and I’ve got a big short position in them. My view is that Fibonacci is going to act as a wall (green tint). We shall see. G’nite.