At this time the oil bullish phase is still on track with what looks like an impulse. Nobody is convinced this has staying power and they may be right, but they are tripping over themselves as to why oil would rally when we are in a world oil glut.
I laughed when they tried to blame this bull market on a production numbers accounting problem. 800,000 barrels per day went missing. The thing is nobody has accurate production and inventory numbers, as non OPEC countries may not even report anything. The fundamental numbers that the mainstream media relies on, is not worth the paper it's printed on.
Also the USA is exporting oil all over the world which completely changes the dynamics of supply and demand combine that with an increase in demand and we have a whole new brave world in oil.
The whole idea is to track this impulse and then try and spot it before it falls apart and crashes as even huge bear market rallies we want to take advantage of it for as long as we can.
I think there is much more to go, until the gold/oil ratio comes back to some kind of a normal ratio.
I think I will use the gold cash price and use it as the base no matter what contract month oil I am in.
This makes todays gold/oil ratio a bit above 30:1 which is still a far cry from being normal.
It would be nice to see a correction with a fast move, as that would indicate a potential "C" wave decline has taken place. This correction may still drop to the last gully bottom so trying to catch a falling knife when it has not pointed down, would be far too early to try.
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