For speculators ( ) there is an important low approaching this summer for crude. At the very least it is heading into a 20 and 80 week low by my count. The curve ball will be whether a 4.5 year low is at hand here as well. The extent of the correction will tell all. This market is heading into a big top, and now the question is to what degree? Oil may reach a higher target in the coming days, but given the parabolic move, at some point it will reverse hard down IMHO.
On this last chart I marked the 4.5 year low as Jan. 2007 to see what it looked like. Visually it doesn't neceesarily fit better then if it were to come this summer.
So I have a starter position short (HGD.TO) averaged in last week. I will add at some point this week. I'm holding for the next 20 week lows, and what should be at least an 80 week low. Looking at the charts, I don't think it will be a mild affair for energy bulls.
P.S. T. Boone Pickens - nice timely call on oil today.
Edited by SilentOne, 20 May 2008 - 04:27 PM.