Crude has been in a sweet uptrend for the last 2 years since bottoming out at 34 dollars a barrel in Jan of 09. I have written before that when Hillary and Maxine waters were squealing about “punishing” greedy oil companies in July 08 with oil at 147 a barrel, they were conspicuously quiet when 6 months later we were at 34.
Interestingly, the 103.62 level was a 62% retracement of that horrendous correction from 147 down to 34. Pull up a chart and look at it.
Wow, Wow, and double wow. I am sure no one out there in the national media will be pointing this out… 103.62 is a sale. We could trade up against that level for quite some time, while sending periodic spikes above to see where the stops are.
Quite frankly, the first time up here has to be a sell. If we settle above it however, you have to think we will drift higher.
Just an amazing move back. oil is 43 dollars away from those 08 summer highs. I am thinking we are headed back there as the commodity bubble continues to inflate.
Have a great weekend.
I will write more about corn wheat and beans this Monday.
