Oil - Bulls Will Be Totally AnnihilatedIn early September, we made what turned out to be a pretty accurate call on crude, predicting that $95~ was the target.
CL WTI Crude Oil - Getting In Sync With The Market Makers
In July, after analysis, I predicted that the target for crude in the intermediate term is actually a 3-or-4 handle, based on reading the tea leaves of yearly bars.
Oil - A New Long Leg Down Soon Begins
There's all sorts of fundamental reasons, one will say, that mean there's NO WAY oil should go down, so much! It should go up, because reasons!
And I think that is true. I think we're going to see $150 or $200 crude in a future that isn't very far away.
But before that happens, since oil has failed to continue upward momentum, the entire previous range from the Russia-Ukraine War has been traded, and the year has mostly been flat-red, it seems to me pretty obvious that the MMs are going to be MMs and go dumpster some long-term longs.
Which means we have a target of $56 before the end of 2024, based on monthly candles:
It's only that I think $56 won't be "the bottom," they'll drive it lowerer for longerer and make energy bulls and equities bears hate their life, before the real fun starts, because that's how big accumulation happens.
Super high prices is almost always preceded by super deep selling. Producers get net short.
Before they get net short, it takes some time to get net long, and even though you may not see that in Commitment of Traders, the big oil companies have entire floors of their headquarter buildings devoted to trading, a lot like a bank.
The Black Swan of Black Swans, though, that can spoil everyone's fun plans, is the Chinese Communist Party and Xi Jinping's tenuous grip on power and reality.
I've said in virtually every post that the CCP is going to fall in our lifetimes. It can fall in one of two ways:
1. Xi Jinping goes Gorbachev and throws the evil Party away, saving China and himself
2. Xi Jinping is strung up as the head of the evil Party, goes down to Hell with the CCP, and something else replaces it
What's at stake for Xi is not only the CCP's boundless crimes against humanity and the ruination of China's 5,000 year Heavenly Dynasties, but the eternal sin of the 24-year organ harvesting and genocide against Falun Dafa's 100 million students.
Although that persecution was started in 1999 by former Chairman Jiang Zemin, who died, because Xi is the leader of the CCP, he'll inherit the crime and face the same Sepulcher, unless he can throw the regime away like the man he ought to be.
When the CCP finally falls, whether it's because Wuhan Pneumonia dropped more than former Premier Li Keqiang, or because Xi dumpsters the Jiang Faction and the International Q Cult that's made itself a particle of the Red Dragon, everything is going to be bigly gap down on a Monday morning.
Stuff like the price of oil may seriously moon, however, because the world society's electricity, heat, and transportation relies entirely on fossil fuels.
And so all dumps on commodities may sharply truncate and reverse seemingly without cause, all equities rallies may sharply truncate and reverse seemingly without cause, and so the risk is enormous.
Trading in these markets in the next 6 months is going to be like playing with fire or gambling your fingers near a really sharp knife.
Never forget this point: a knife just cuts.
A knife doesn't care who or what it cuts. It just cuts.
If you don't want to lose your fingers and your hands, don't put your fingers and your hands under a knife.
Once they're gone, there are no miracles to bring them back.
The way it's looked at up high is that, in reality, you made the choice to put your hands under the knife, and so when it cuts what should be cut, it cut what should be cut, and that's your own problem caused by your own pursuits.
Be careful.
