Oil broke below support today but managed to close back above it. Key support for oil is at 48.46. What makes this level important is that it is the base of the descending triangle that has formed. It is make or break time for this pattern, as oil nears the sweet spot of this pattern. The key levels to watch now are the 50.15 level and the 48.46 level. A break above 50.15 voids this pattern. While a break below 48.46 and more importantly a close below it, confirms that pattern. The descending triangle provides a potential move of about -10% if it was to break. This would send oil down $44. Keep an eye out because if Oil sells off it just might be that catalyst that gets this market to sell off further. This pattern is also seen in USO. (Click on either chart for larger version): (more…)
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I’m still very much positioned for further market weakness, and I’m hoping to hang on tight until the VIX gets back up to about 23 or so. Below are a few targets that I think would be reasonable in the face of a sell-off. First, the Dow: I’m looking for support just above 17,000:
Here’s today’s swing-trading watch-list:
Short Bloomin’ Brands (BLMN)
Although I’ve never been to a Marie Callender’s before (which may explain why I weigh well less than 300 pounds), I remember their old slogan: “Come for the food, stay for the pie.” Slope is somewhat like that: people come for the charts, but they stay for the comments.
Indeed, the comments section is the bedrock of Slope’s popularity. Morning, noon, and night, 365 days a year, people are chattering away. I’ve been getting some pushback for doing too many posts, which tends to break up conversations and spoil the rhythm. Yesterday, for instance, I counted no fewer than a dozen posts (two of which were for Slope+ members only). I agree, that’s just too many.