Elliott Wave 5.0 "Reboot"

Thursday, March 17, 2016

WTI, Crude Oil Intraday Bull Market Review: Did The Glut Frenzy Matter?

Crude oil is a prime example, how repeated fundamental news can brainwash us into actually believing that fundamentals matter. Fundamentals will always tell you the wrong things at the extremes.  Iran does not matter as all they are trying to do is get back to old production numbers. 

It also takes little to disrupt world oil production, which the mainstream media does not report until it is too late.   When something is in a bullish phase nothing will stop it until it's time has run its course.
Besides, we should get some more obvious and ominous wave patterns forming, as the market will give us warnings on a bigger scale of an end. 

Right now we could get another big leg up as 5th waves have a tendency to extend, but this is not written in stone. It would be nice to see oil travel north some more as that would help to make a longer impulse wave. In the end, we take what we can get. 

As I mentioned in my gold update, the gold/oil ratio is at a very healthy 32:1 so this indicator is still working in our favor.  At anytime  wild corrections can happen, but each time that they do I look for "ABC" patterns to form, when they form then the asset class should push higher once again.