Warning – this post is not for the faint trading heart! A few readers have asked alternate methods to trade crude oil price moves and I’ve generally suggested the USO fund and a few others, but if you have some experience under your belt and want to take the most advantage of your directional bias,…
From the looks of it, the US Dollar Index is breaking down while Crude Oil and other commodities appear to be building bases. Let’s take a quick comparison of the US Dollar Index and Crude Oil prices to see these developments in price structure. US Dollar Index: The Dollar formed a wedge pattern in mid-November…
We’ve witnessed absolute destruction in the price of crude oil and in other commodities in such a short period of time. However, the situation might be changing and aggressive speculators might find a significant low-risk opportunity should crude oil find support at the well-established level of $40 per barrel. Let’s see this and how it…
Let’s take a moment to look at a fund you may not have been aware of, but that has formed two nice daily divergences which have since resolved that can serve as an educational example. The fund is DUG, the UltraShort (2 times leverage) Oil and Gas ProShares fund (which moves inverse to Dow Jones…
According to a few price calculations and support levels, odds have now shifted to favor a current possible short-term bottom for crude oil prices and a reversal to test higher levels – a technical development that comes at a time that gold has supported at similar levels and the S&P 500 is breaking down out…
Last week, gold prices broke a set of resistance trendlines, and could be headed higher. Let’s look at the chart to see the recent developments. Gold prices (per ounce) daily: Whether you draw the longer trendline off the closing (or even intraday) highs from mid-March, or of the most recent two swing highs, price indeed…
Crude Oil has been, and is currently, the focus of an extraordinary amount of coverage in the media, and is a dominant topic at the watercoolers and at home. Ask anyone you see and odds are they have a strong opinion about high crude oil (or gasoline) prices – and it’s probably strongly negative. This…
Is the US Dollar Index in the process of bottoming? Has it formed one already? What does this mean for the overall market and for commodities? Let’s look briefly at the charts. First, the ‘structure’ of the Daily US Dollar Index: Notice the price making lows at $71 but always failing to exceed those lows. …
What are the odds that the average cost of a gallon of gas at the pump will cost $5.00? While that’s hard to discern now, a solid 86% of Americans in a CNN poll released today said that possibility was at least somewhat likely. Here are some key quotes from the Washington Post article “Fuel…
The headline from last week will be the sudden surge in crude oil prices, but let’s take a moment and view this development along with the implications for the US Dollar Index. Crude Oil Prices: This is an excellent example of why it’s best not to try to anticipate market tops or bottoms. It also…