Elliott Wave 5.0 "Reboot"

Tuesday, February 23, 2016

Saudi Oil Minister Slams The Oil Price!


         

             Crude drops as Saudi oil minister shatters hope for producer cuts - MarketWatch
http://www.marketwatch.com/story/oil-prices-peel-back-some-of-mondays-rally-as-investors-cash-in-on-gains-2016-02-23?mod=MW_story_top_stories



One guy in the entire world opens his big mouth and oil crashes. All this proves is that oil fundamentals come from emotional reactions from news not from facts.  What the headlines do not tell you is that,  

"He also said he has no concerns about demand, so he welcomes additional supplies, including shale oil."

Oil is being consumed as fast as they can produce it and any small hiccup in production could send oil soaring. Where is the price going to go? Is it still hell bent on going to $20 or $10, if it is then ask yourself one big question, "Where is the price going to go after it hits this so called $20 price floor?" Or the SC degree $10 price, or the GSC degree $9.89 price bottom. 

Who are all these experts talking to that will force the readers to sell all their oil holdings or take a huge short position in oil.  Must be some tribe just arriving from Mars that we don't know about!  They might be stoaway's in SpaceX boasters returning to earth! :) 

Obviously nobody sees the big "ABC" crash that we have had since the 2008 peak. 

Sorry folks, but I can't help picking on the super bears as they have a very narrow view of things and will always end up in a trap. 

Since the top on the 18th I had a zigzag crash, which is  not completely confirmed yet as oil has not pushed to new highs above $34, which would then give us a complete 100% retracement

Then the second massive rally spike was also an inverted "ABC" which has now been confirmed by our recent lows formed today, giving us a 100% retracement.  We could be in a small expanded pattern so that may still have to play out. Worst case scenario would be an ending diagonal which would take oil to a new record bear market low. 

I think I may have my last bullish consensus report come in today, and I will not be renewing it at this time, but this report showed a low all last week of 20% and lower so that is still far down the bullish consensus ladder.  I don't think the 24 month low of 9% will be broken and it should only go up from these levels, as the bulls return.