Friday 19 December 2014

2pm update - important oil gains

Whilst the broader equity market is churning into the weekend, there are notable strong gains in Oil, +3.7% . If oil has indeed floored in the $53s (as I strongly believe), then rising prices into early 2015 will be an extra kick for equities, esp' energy sector. Near term outlook is most certainly for continued broad gains.


USO, daily'2, rainbow


USO, weekly2, rainbow


Summary

*note the capitulation volume on the weekly chart... highly indicative of a turn/floor.
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The decline in oil was a major excuse for the down wave of sp'2079/1972... and with Oil having now formed a micro double floor... a very sig' bounce to the low $70s will be a massive boost to both US and world markets.

I sure don't think many have remotely considered that yet.
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Regardless of the weekly close in oil and equities, it has been a massive week for the bulls. Even the Russia market appears to have floored.. with a rather obvious spike-floor.
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back at 3pm