Crude bounce.....

well oil on friday had some weird price action, very whippy, all over the place. The initial selloff looked to be "profit taking" and shaking out of the late longs. Then late day we rallied.......
I think we are still in bull mode and wouldnt even think about trying to fade rallies from here on out (unless i am a glutton for punishment.) This price action screams to me that we are headed higher.........any thoughts>?

Also, the less explanation for a move, the better the chance that the move will continue in that direction.
 
Quote from patbateman:

well oil on friday had some weird price action, very whippy, all over the place.
........any thoughts>?
More...

Products futures expiration (Friday) tends to lend itself to this kind of action ....
 
I am certainly less bearish now than I was initially...though I just can't fathom $75...something tells me that if we were going to 75 we would already have been there...what is your rationale for going to 75 now?
 
traderguy,

there is no rationale. Markets dont make sense, especially when you try to make sense of them. The more you try, the more confusing it can be. From a technical standpoint, this market broke thru a consolidation by gapping higher. The gap remains intact. the hedge funds run the energy market, they have created support wherever they want. The shorts are covering now and probably flipping. Why are you bearish?

Longer term, at the end of the day, china and india will be buying more oil......
 
yea...i'm starting to learn the whole zero rationale thing here...guess i always try to look at supply/demand...the fundies...but even those aren't correct eh...
 
Today crude held the low from two days ago and rallied at the end.....seems to be bullish price action if you ask me. The DOE inventory numbers tommorrow are expecting crude to have a build of 1.5 mmbls...i would love to see the build be bigger and crude to rally.........
 
Quote from patbateman:

Today crude held the low from two days ago and rallied at the end.....seems to be bullish price action if you ask me. The DOE inventory numbers tommorrow are expecting crude to have a build of 1.5 mmbls...i would love to see the build be bigger and crude to rally.........
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I don't understand why you think crude should rally if the build is bigger? I'd think the opposites would be true. Its possible crude may rally regardless of DOE reports. It is somewhat bullish that prices have held such a tight range over the last week.
 
looks like we are going to be in for a really bad hurricane season this year... between that ..and Iran getting into war mode.. this could be a fun year.

The market has ignored all fundemental factors ..people are just looking for a reason to buy.
 
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