Posted on 08/24/2015 10:50:58 AM PDT by blam
Matt Smith
August 24, 2015
One hundred and eleven years after the birth of Count Basie, and the ongoing rout in the crude complex is in full swing today. Downhill one-way traffic continues amid headlines such as ‘No End in Sight for Oil Glut‘ and ‘Oil Poised for Longest Weekly Losing Streak Since 1986 Amid Glut‘. As the headlines get more apocalyptic, and the price projections get lower (this week: $15 oil, no, $10 oil), the more it feels like we are approaching a turning point. Or at least a whipsaw.
Looking at the overnight data releases, China has served to endorse the current mood of doom and gloom via a preliminary manufacturing print of prodigiously downbeat proportions. A print of 47.1 was seen, which was considerably lower than last month’s 47.8, and shy of the consensus of 47.7. It is the lowest print since March 2009 (hark, the belly of the great recession).
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(Excerpt) Read more at businessinsider.com ...
Doom and gloom is sometimes a buy signal.
This is how media and political "crisis frenzies" work. When oil is at $150/barrel it's a "crisis" because it's harder to afford it. When it is at $15/barrel it's a "crisis" because the energy sector suffers. There isn't a single price point for oil that isn't considered a "crisis" by people in the media and in government.
Only if you can reasonably expect that the light at the end of the tunnel is not an oncoming train
Right now, IMHO there are no buy signals for oil. The chart posted you will notice a double bottom then an up tick. This market looks to have still hasn’t found it’s support point, usually a previous low.
It has already passed it’s previous support levels of the last 3 years, I don’t see a chart going back further then that.
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