Oil..still doomed

The chart ive been posting for the past couple months just keeps confirming that petro is doomed..in a big way. If the support you see down at around $39 fails the next is actually negative integers.. Oil trading for -.20 per barrel? Hmm.. No one ever thought we see wide spread negative interest rates on euro sovereign debt either..

I know it sounds ridiculous but who knows these days..

crude-weekly

 

The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan

Oil and the Road Map to War with Russia

Last week i posted that i was getting short crude oil based upon the weekly chart you see below.

This chart has provided me with a number of good trades over the past 2 years..like this one from 3 weeks ago.

Oil weekly

crude-oil-futures

To me this chart is really much more than oil. It could be the road map to the eventual unseating of the Putin regime in Russia. This occurring either through peaceful democratic regime change (doubtful) or through a contrived war designed as deflection from the deteriorating Russian domestic situation. As bad as it sounds it’s looking more likely every day that Putin is ramping the rabid patriotism, nostalgia for WW2, Stalin worship and the rest to a real military confrontation with the West.

Earlier this week George Soros wrote that the Putin regime cannot last 2-3 years with oil below $100. He’s right with one caveat..  Putin has Russian culture all set to gladly accept real war as a fact of daily life. And with this he will merely replace (for a time) the petro economy with a war machine.

Who will pay for this?  This is where Putin benefits on a few fronts. The oligarchs will be fleeced one by one and as they fall individually the fear among those remaining will only increase the competition of loyalty among them to Putin. Putin also gets his war machine and with that vastly increased popularity at home as a “war President” fighting the western aggressors.  The oligarchs will fall over themselves demonstrating their generosity in giving to the war effort and set a good example for the general public to do their part as well. This combined with “one time emergency” taxes and domestic bond programs will make good little self-perceived martyrs of  every man, woman and child.

But again, this will only work for a time. Eventually Putin is going..and it won’t be pretty. Taking down Russia (and possibly Ukraine) with him is really his only choice here.

In the mean time he will need a trigger. Something so offensive to the average Russian that a full scale invasion of Ukraine will be demanded. Putin has been known to use false flags in the past and this will probably be the case again. Here’s an article i wrote on this subject in March of 2014 that’s worth a read.

Putin is cornered and this will probably get ugly.

From a trading angle I’m still short the ruble and oil and as of two days ago short the high multiple indices such as Russell2000 as i posted here.

USD should benefit from any further deterioration of the situation, world markets will suffer and a stronger USD is not what the market needs at this point.

Here’s the USD..

Old resistance has become support. Higher floor should mean higher ceiling or breaking of that ceiling..

usd-monthly

All this and world indices all sitting at very long term resistance levels. Maybe we wait until the autumn to get the hammer.. But it’s coming.

 

 

 

 

 

The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan

China – Amazingly still not done

Everyone trying to call the top on the white-hot Chinese market (that i dont trade).

Paul pulled this chart up this morning and incredibly it looks to be ready for another leg higher.. Just crazy stuff here. There’s too many better low risk opportunities in other markets right now for me to consider this as a position but just something to note..

PBOC seems to be making it clear by news we see today that they plan to do what it takes to maintain the current parabolic trajectory as policy, no matter how suicidal it will be for the country.

When resistance becomes support we know what happens..  Some calls here are probably not a bad idea for some.

china etf

 

 

 

 

 

 

The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan

The Bondocalypse may be over

CNBC/Bloomberg guys all out in force telling us it’s over for bonds..  So..I’m buying Treasuries today.

See chart. If this higher floor develops properly it should mean another run at the 160’s which is quite a bit higher than now.

Keep in mind each bar on this chart is one month…long term.

BR712538-095

 

The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan

Another successful trade

The crude oil short i posted a few days ago worked out nicely. Took profit on the crude oil futures and options around session close last night.

You can see that post here.

As you can see from this trade and the Home Construction ETF trade before it i am trading more the reactions than longer staying wiht a longer term trend lately. With the increased volatility we’ve been seeing it seems best to take the high potential, low risk reactions rather than sticking wiht any theme. the recent madness seen in German Bunds is a good example of what’s only going to increase in frequency.

Here’s the same chart of crude oil futures, current. You can see the nice reaction we got just where the short was taken, only missing the peak by a few cents.

Price fell almost -6% from that resistance as you can see.

cl-brag

 

 

 

 

The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan