Must watch: <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/sCi7SXnO_Ps&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/sCi7SXnO_Ps&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object> http://www.youtube.com/watch?v=sCi7SXnO_Ps
some thoughts on this pullback in oil http://www.tradingmarkets.com/.site...Just-A-Pull-Back-OR-Change-In-Trend-77658.cfm The price of oil is dominating the worldâs economic news lately. A massive, powerful and short crushing uptrend has been underway since January 2007. Every murmur and rumor out of the Middle East is causing severe reactions in price. Wars, storms, strikes, terrorism, and supply/demand concerns are magnified in effect, due to the intense scrutiny being paid to this economically critical commodity. The entire U.S. stock market seems to be tied to the price of oil; oil goes up, the market falls and vice versa. Even the weak state of the U.S. Dollar sways with the price of oil. Every pull back since 2007, has been answered with another surge ahead. However, there are several very important differences between the current pull back in price and the ones in the past. First, this decrease was the steepest 4-day decline in oil trading history. Secondly, price broke the 50-day Simple Moving Average on the daily chart for the first time during a pull back. The SMA is now at $133.39 on the daily chart. Some technicians would consider this a strong sell, or go short signal. Price is still nicely above the 200-day SMA which is presently at $106.58. Fundamentally, this severe pullback seems to have its genesis in slowing demand due to general economic weakness and a perceived easing in U.S.-Iran tensions. Perhaps, the fact that average oil inventory has not decreased during the run up is starting to sink into tradersâ minds, slowing the speculative frenzy. Today, a bounce back from this decline is underway. Oil flirted with the 50-...... You can see http://www.tradingmarkets.com/.site...Just-A-Pull-Back-OR-Change-In-Trend-77658.cfm Itâs my contention that the preponderance of the evidence indicates that this pull back is not finished and may actually be a change in trend. How long will this last, is the question. Regardless of your bias in the oil market, be sure to trade only with risk capital and position size accordingly. Best Wishes!