BLOWOFF TOP IN OIL?
I characterize blow-off top by degree of ascent and time. For crude oil, since January 2007, the level of ascent is 55 degrees, not close to the 75-80 degree angle of ascent seen in typical blow-off tops or parabolic moves.
Therefore, strong pricing power and supply/demand suggest corrections likely within an overall still bullish sector. The noise is getting strong on the media and the street as to how high can we go. Every story or commentator brought on to comment is from the energy sector. That ignores much of everything else. Too much bias can cause the average investor to be pulled in near short-term tops.
So, no blow-off yet, but looking extended from a hype perspective. Strategy for traders — Lighten positions into further strength.
FOR TRADERS EYES ONLY!
3 years ago • Notes