US OIL is coming into multiple resistance area. Not only is demand not there to support prices (Airlines, working from home as examples) Higher rates, stronger dollar, & pre covid price benchmark with 3.4% unemployment do not support rational price levels. Key word RATIONAL. I remain bearish in oil.
Nice to look at history once in a while. As we can see 30% of corrections were frequent, unlike today where we suffer from asset price inflation with low economic growth relative. 2008 we had a REAL GDP of $15 trillion with $10T of public debt. 2021 18T of REAL GPD & $28T of public debt. Clearly, deficits do not contribute to economic growth. We only get $0.16...
With rising long-term rates so low, extremely low inventories with very favorable commodity prices (till recently) and very favorable lending conditions pushing home prices higher it is not unreasonable for prices to fall with higher rising long rates, commodities, and increased supply. Though bank lending should remain very favorable. See chart below. Banks...
The chart setup indicating a possible breakout bad for the USD. Very bad! Keep printing!
SPY rising long term wedge is starting to falter.
CRB is coming into major resistance area and likely to reverse in the near future. Implications beyond the obvious commodities are Stronger dollar Lower 10 Year Yield A Solid breakout from the long term downward channel, would require a high base reversal Bull flag of sorts. Build some kind of pressure followed by a breakout. FYI I am not in the inflation camp.
As the dollar is breaking out from key area, Copper is double topping.
Nice risk/reward in this bull flag. While other commodities are hitting resistance areas, Gold has been correcting. Nice add to a portfolio on a bounce here.
Keep an Eye on USDCAD on the break higher. this long term structure needs to correct.
RSP is equal weighted S&P vs Obviously SPY The ratio between these two indicates where money is flowing into or selling out of. There has been a market shift since Nov 2020 that is now approaching long term resistance. High flyers like FANGS IPO ARKK SPAC etc... Are getting murdered while boring stocks holding up well. Winners are usually the last to go and...
After Double topping NDX has dropped much faster than IWM. Why I view this ratios type analysis as important part of BKC (bare knuckle charting.)
If you loved GME at $350, you will really love GME at $194! joke! For some reason, I get the pro-GME crowd commenting on my charts. Despite me twice showing them a topping pattern that has TWICE worked as it should. Now I am not claiming its 100% accurate Nothing is 100%. But from a risk-reward standpoint when Big M patterns occur at tops you better pay close...
As expected the long-term channel broke. Twice I posted the setup prior but never broke. This time it has. great setup from a risk-reward standpoint. Again as mentioned in earlier posts. "Do not fall victim to this Texas Oil Crisis. Oil moves for two main reasons. 1. Global Demand 2. A significant drop or rise in $. Commodities are on the rise without a doubt...
Worth keeping an eye on for a solid breakout here. Look for a correction first.
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It doesn't get any simpler than this in terms of risk/reward.
Here are 2 fine examples of structure. As the market weakens a break below the current structure is likely. With AMNZ already broke MSFT could be next.
TSAKOS ENERGY NAVIGATION owns 64 oil tankers and is set to make a big move up. Shipping is a bottle neck industry and prices can get out of control quickly. With VALUE being the name of the game lately and shipping costs rising it is only a matter of time the long term downtrend starts to reverse and price starts to rise. with 33% of TNP fleet not locked into long...