Wednesday June 27, 2012
Did crude oil make the turn today? Let's check a few recent recommendations.
XES Energy Service ETF up .92, 3.27%.
XME, Metals ETF up 2.99%.
FCG Nat Gas ETF up 5.26% - Gee our longer term view of nat gas is being validated.
Crude oil jumped 1.4% back to 80.45. Ramki's article predicting $70 crude was in Forbes this week, recall I doubted we would get there. My point is that it is typical to see ever lower predictions at or near the bottom of any market. Crude has slowly made higher lows each day after a potential fifth wave low, but as readers know I do not claim to be an Elliott Wave expert. ON day does not change a trend but the action in energy services is rather positive.
The dollar was off a tad and bonds remain stubbornly high, as we said, priced for the end of the world. This should make their fall that much more dramatic as buyers exit bonds for the stock market.
Meanwhile back at the Internal Indicator Ranch, the McClellan Osciallators for NASD and NYSE turend up as well as bullish percent indicators.
Botton line, today the markets started to do what they must do to begin a rally , doubted by the mainstream analytic community.
Tomorrow the Supreme Court announces a decision on Obamacare. As they are lawyers I doubt we get a clear cut thumbs up or down but a garbled yes this no that, leaving a mess on the table.
Stockton CA will probably take bankruptcy this week. Mish has said it would only take one big city to bring on a flood of such filings. Our point is that this may well generate a rally. Predicting things day to day is near impossible but this is a gathering storm of events in one day.