Hey Ivan. A true blow off top is when an issue is in an uptrend. Gaps open higher...then closes below the open on heavy volume..usually after a parabolic move. Some call it a one day reversal. Since crude(and many other futs) is pretty much a 24 hour mkt...you dont get the gap open portion. But the other rules do apply. So I would say no...this is not a blow off top. In fact volume seems to be lighter today than lately. Short panic covering perhaps???... Good trading to you.
Hey Landis, is your life so bad that you need to constantly belittle and insult folks online? I know how to read a chart. I've looked at the crude chart. I'm trying to understand the spike today that went almost three bucks. I recognize that you're a more seasoned trader - but if you don't have anything positive to say, don't respond to the thread. Alright, man?
Indahook speaks the truth. You might also wish to take a look at the Committment of Traders (COT) data for the week ended April 15th. The Commercials have yet to establish as large of a short position as they had when oil initially peaked in the $109 handle back on March 13th. At that time, they were up to 996,000 contracts short. Right now, they are about 60,000 from that number as of Tuesday's data. I would expect these participants to match or exceed those numbers ( of the March 11th reporting period ) before we see yet another short-term top. Blow-off, no. Parabolic move, yes.
Maybe ask--why should oil go down? Bad news and new bulls will continue up & up. So you heard $100 is sustainable and they rushed to it with barely any reliable backing, a little patience to see if anyone does anything to stop it, and now a rush to $120 and there is no reason why not! ....$300 is what we have to pay to be on par with Europe. People will be saying and throwing $150 in a few weeks guaranteed yikes :eek:
Yes. CL offers you sh*tloads & sh*tloads of points to take away daily. Thats whats going on. It goes on every day. Is there anything more important than making money from a market and seeing where the money can be made from a market? Is there something else you want to wait for first? Play the upswings and downswings. They are often big and fast on CL. If the preference, most often, is to stay out of CL & play with your knob instead, then eventually one thing has to be faced: this market is not for those without savvy.
I think what he meant to say is if you feel like a big shot with money to waste then go for the big ups or downs totally randomly. Back to reality, the answer I think you're looking for is I've seen the price go up big on days when the market actually rebounds aswell. This phenomenon is due to the fact that the U.S. is the main consumer of oil; so if we are expanding more oil will be in demand. If dollar went up and oil went up in the same day then that is not average because they are used as hedges against one another nowadays (like shorting and longing almost the same stock in separate sectors for protection against a disaster). Hope that helps about basic economics.
Yeah, there's a divergence between gold with the dollar, and oil. That's what I was really referring to. Thanks for the answers, folks.