Crude finished its 10-day, $7.00 break from 92.50 down to today’s low at 85.07… Its Friday. Its the last day of the month. Traders will take profits. Buying could push us up to 87.87, and then 1/2 way back of the move, which i always like to sell, 88.74. Today I am a small long. My buy stops were triggered when we traded above 86.15.
The longer term trend line for crude remains bullish. crude has made higher major highs and higher major lows for the last 6 months. It does look a little toppy at the 92.50 level.. If we can settle above 92.50, that will open the door up to 100.00 a barrel oil.
One quick question for all of you>… Has your gas dropped in the last ten days? Crude dropped 7.00 a barrel. The answer is probably no. High gas prices are a function of not enough refining capacity in the USA.
Also, the US is still resisting allowing a pipeline from Canada which would run through NE, bringing down oil from the Canadian oil sand deposits. I guess those opposed to the pipeline would rather see the oil go to the PNW and out to China and the rest of Asia.
Just food for thought.
I will update the grains later today, but quite honestly, this is the last Friday of the month. Look for the funds to dress up their positions with fresh buying to paint the charts for the weekend, accross the board, corn, wheat, and beans.
Good Trading
