On Thrusday crude oil exploded like a horse out of the gates in a race. Now we have to see if it has staying power. At the $40 price level oil could run into serious problems, but if the impulse is still to come, then another bull market high will happen. Worst case scenario is the dreaded impulse heading down, but then oil would hit the bottom trend line again. Another worst case scenario is if we turn into a triangle, then we would be at an "A" position.
The triangle would take a long time to play out, and therefore would travel far beyond the bottom trend line. So this is my least favorite option. At any time I can have a minimum of 5 potential patterns specific to any one degree, so I could spend lot's of time for each different pattern.
The idea is to get as close as we can to turnings that matter as there are not too many bulls around that can stay in a long position with an "ABC" crash like this. If the bulls have just switched to a short position, then they are screwed once again, and will be forced to change their positions. Back and forth like a Yo-Yo until they figure out to sell high and buy low. That will never happen as most traders are bandwagon jumpers and only a few contrarians know how to articulate catching a falling knife.
Steven Jon Kaplan has contacted me via email and he has posted some links back to me. A Twitter posting gave me the biggest traffic.
I would like to thank Steven Jon Kaplan from the True Contrarian to give me a notice to his subscribers.
permission to post his last News Letter unedited, but nothing will happen until he gives me a clear signal to do so. have asked
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