I guess it’s not important that you’ve been hearing right here on these pages for weeks not to be short oil.
Oil was in a bullish pattern and certainly could see higher prices up to 110 per barrel on the crude future contract.
So what happens today? The price of crude has a nice up day of about 2% and the media goes wild about the uprisings in Iraq. Really?
You’ve been hearing right here that when the price of crude rises, it will be because of either Russia or the Middle East.
Here we go, today it was the middle east.
Oil can still get up to the $110 neighborhood, and on a real blow off top, maybe up to $120 or so.
Don’t short oil right now. Later, and I’ll let you know when.
So the stock market had a technical sell off today. A day early in my opinion which threw a monkey wrench into the plan of shorting the market this afternoon for a gap down Friday. We still may get that down move, but since the set up wasn’t in my favor, we pass and wait for a higher percentage play. Remember, there is always another trade around the corner.
You can watch the rest of the common sense technical analysis in the video below.