Do not despair for the Mole is on the case. While many of you equity addicts are impatiently waiting for your turn to commit ritual seppuku I for one have been monitoring crude with increasing interest. Yes – just like equities crude hasn’t gone anywhere fast in the last few weeks but that is pretty much where the resemblance ends.
It’s crickets on the setup front, nothing salient on my momo charts either. Which means it’s time to relax, take a step back, and review the big picture across the board. Although point & figure charts seem a bit antiquated in this day and age I have never understood the negative opinion some traders hold against them. After all PnFs simply give us an opportunity to cancel out an inherent but sometimes deceptive aspect of your vanilla candle or line charts. And that is TIME.
When looking for a good theme for this post I pondered for a while and then decided to use a picture of a bristlecone pine, which are widely considered to be the oldest living trees in the world. You can find them near the Nevada/California border and if you wind up traveling in the area then I strongly recommend that head over to Bishop and from there head up high up into the White Mountains.
What goes [straight] up must eventually go down. However when exactly a symbol which has turned exponential runs out of fuel is the more important question. Once emotions reign high all bets are off – or in this case all bids are on. You may recall that I was pointing at gold the other day and suggesting that we may see another wild push to the upside.
Which is exactly what we got and I’m pretty glad I got out of my short position at break/even. We are now seeing an obligatory pullback but medium term this thing may have legs.
Just FYI – the P&F claims that we met the bullish price objective. However I wouldn’t really think [...]