The ECAT Revolution (Update)

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We have made a post a few days ago, about a possible correlation between falling oil prices and the advance/progress of a specific new source of energy called “energy catalizer”.

Apparently a well-known russian scientist has now found a way to replicate the same energy device.

But there is more, an article published today by a swedish energy journalist called Mats Lewan, provides a number of charts and data analysis that puts the whole thing in perspective and raises some questions, because it seems plausible that someone has started to bet that oil will not be anymore the primary source of energy for this planet, in the future.

In particular, we find interesting a couple of charts he published in the article because they show a clear market reaction at the time of the publication of Andrea Rossi’s Lugano Report:

There are other theories on why Oil prices are falling: some people theorized that it’s a good way to re-start the economy and at the same time put Putin and other anti-american Oil producers like Iran on their knees. Sort of take two birds with a stone.

The idea behind this logic is that arab countries are already rich and in the end they can tolerate lower oil prices, while Putin and Iran can’t, and so the combination of ultra-low interest rates worldwide, plus QE from Europe’s Central Bank (Mario Draghi) plus the ultra-low oil prices will help the economy take off and inflate from here.

If it’s true is terrible news for anyone hoping for a market collapse. Someone said there is going to be a Bull Market from here, what happened so far (from the 2009 bottom) was just “recovery” to previous market levels, adjusted for inflation through the years.

Hard to say which one of the many hypothesis is true, maybe none of them, that is why at Retracement Levels we prefer to use quantitative models for short-term trading, barring any prediction for the long-term, but the correlation between Oil prices and the “energy catalyzer” progress is worth keeping an eye on.

If you are interested in trading Light Crude Oil (CL) Futures SHORT, please contact us, we have a specific model for that.