Here’s Where A Tradable Pullback In Oil Is Forming
The top chart to the
right is our forecast from last December on the future direction of crude oil.
The following chart is from a January 22 update on the real price of crude
(oil/gold ratio) that we said was still higher.
The bottom chart is from today showing the spike
to $70 a barrel has taken the oil/gold ratio to a high of 0.16 ($70/$439), which
is testing channel support for each of the previous real highs in oil.
Since January the real price of crude oil has
increased 60%. As we explained in this weekend’s report, this is the real reason
the President’s approval ratings are slumping. It’s the economy stupid, all over
again.
Our view is that we can see a completed “wave
III†top here, which will provide the opportunity to position long crude oil on
a needed pullback in “wave IV.â€
Regards,
Jes Black
FX Money Trends
613 4th St Suite 505
Hoboken, NJ 07030
Tel: 646.229.5401
Jes
Black is the fund manager at Black Flag Capital Partners and Chairman of
the firm’s Investment Committee, which oversees research, investment and
trading strategies. You can find out more about Jes at
BlackFlagForex.com.
Prior
to organizing the hedge fund he was hired by MG Financial Group to help
run their flagship news and analysis department,
Forexnews.com. After four
years as a senior currency strategist he went on to found
FxMoneyTrends.com – a research firm catering to professional traders.
Jes
Black’s opinions are often featured in the Wall Street Journal, Barrons,
Financial Times and Reuters. He has also written numerous strategy pieces
for Futures magazine and regularly attends industry conferences to speak
about the currency markets.