Crude tech update – market update

Crude is using the tolerance down to 50 and, since we are in week 11 and daily counts at 7, it smells like a low below 50 is inevitable now. We need to produce a lower weekly close and 5 lower daily closes to get a trough and that requires a dip below 50. Capitulation all across the board is the mode. We dropped into and such lows within a close to depression sentiment makes a painful finish usually.

Stock markets are in the expected capitulation today as volume picked up substantially but blue chips are sold off with the attitude you get in capitulations. Especially financials get hit hard today and some overvalued financials like JPM and WFC get closer to moderate valuations. We dropped even below the 2002 low right now with heavy volume – so all the year end bulls are throwing the towels in, which is good in order to get a low.

Advertisements

~ by behindthematrix on November 20, 2008.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: