Oil Close To Bottoming...
As the dirty energy (in more ways than one) touched the 62 mark today I began to see what I tend to look for when I call a position.
What is that?
I think you know by now. The talking heads all collaborating on how low oil is likely to go along with the softening in the economies around the world. This of course is what is going to push oil a lot lower right?
Well if price ever relied on the news (and it does not) then we might think there is something about this move that should start to strike fear into the average person or the hedge funds that were long providing the liquidity for the move lower. That liquidity is likely drying up right about now and that is why the prices lower are so anemic. It does not mean that it could not return to the 40-55 range it was in during the 2014 to 2017 time frames but I don't think that it is likely. The economy relies upon prices being at a fair market area which allows some exploration and some development of new technologies. This is more at the 60 area than the 40 area. That is too low.
So that being said I have flattened out the last bit of my positioning and will wait for the turn over the next week or so. I think we are close to a bottom and the news tells me that we are likely close.
Have a great weekend.
What is that?
I think you know by now. The talking heads all collaborating on how low oil is likely to go along with the softening in the economies around the world. This of course is what is going to push oil a lot lower right?
Well if price ever relied on the news (and it does not) then we might think there is something about this move that should start to strike fear into the average person or the hedge funds that were long providing the liquidity for the move lower. That liquidity is likely drying up right about now and that is why the prices lower are so anemic. It does not mean that it could not return to the 40-55 range it was in during the 2014 to 2017 time frames but I don't think that it is likely. The economy relies upon prices being at a fair market area which allows some exploration and some development of new technologies. This is more at the 60 area than the 40 area. That is too low.
So that being said I have flattened out the last bit of my positioning and will wait for the turn over the next week or so. I think we are close to a bottom and the news tells me that we are likely close.
Have a great weekend.
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