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Oil Tumbles Under $43 As Key Support Breached; Fresh 6 Year Lows
2015 Mar 16, 8:58am 852 views 3 comments
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NDrLoR
2015 Mar 16, 9:07am
I wish those stations where gasoline has jumped from $1.74 to $2.15 in the last few weeks would get the message. And why do they keep referring to "unleaded" gasoline--leaded gasoline hasn't been on the market for over 30 years.
I don't see how this could be bad for the economy. Oh, yeah, I forgot. This is bad for the 1%, and the media is controlled by the 1%. The 1% must be getting desperate. When the economy was bad, really bad for the 1%, the Feds had stepped into increasing the price of commodity by QE. Now the QE is ending, we should have known that the high price of oil was coming to an end. The demand by Chinese market is not really waning as their GDP is still growing. When Feds were helping the 1%, the rest of the economy was suffering. The 1% has recovered by hoarding more money from the middle class. Hence the middle class was disappearing fast. Now, QE is ending, we have to pay less at the pump and at the grocery stores.
So who were the idiots that believed in trickle down economy? You guys are idiots. People are greedier than you think they are. They are hoarders. They swindle money from the middle class and hoard the money. We should call our economy "Hoarding Economy." And we should abandon the idea of giving tax breaks to the rich. It is ridiculous. Now, we can use the money we saved at the pump and the grocery stores to buy other goods. That will move the money around.
Moments ago, soothing words by Saudi Arabians notwithstanding, both Brent and WTI, had another step move lower, with Wext-Texas Intermediate sliding under $43, a fresh 6 year low, and well below the January lows of $44.37! What may be causing it: well, aside for "more sellers than buyers", and a rumor that Genscape reporting another major inventory build at Cushing, a breach of a key support line may be the reason. BofA explains.
CLJ5 has broken down overnight, breaking the Jan-29 lows at 44.37 (CLK5 needs to break 45.52, it's not there yet). This points to a continuation of the long term bear trend, exposing the confluence of long term support between 41.15/37.80. Into here we look for greater signs of basing. especially as Brent, Gasoil, RBOB and HO are not at risk of breaking their January lows, setting up the potential for bullish price divergences.