Wed Nov 19 2014
We remarked yesterday that the graph of mergers on the front page of the WSJ tracked the ups and downs of the market for the last 15 eyars. Mark Hulbert draws the same conclusion.
Mark Hulbert remarks on the M & A Mania.
Crude Oil Still Falling
A 61% re tracement of the entire move from 35 to 145 would be 77.08. Price has now fallen through that level to 74.21. In 2010 the price traced along the $70 level so that seems to be the next stop.
Exxon Mobil
This is as textbook as it gets for Elliott Waves. Wave two alternates with Wave Four, two is sideways and four is a strong re bound. This has led to articles suggesting that big oil is recovering, a typical message of a fourth wave.
But the pattern here, and the continued lower price of oil suggests this is not over yet.
Conoco Phillips and Chevron exhibit similar patterns. XOM is the widest held energy stock so its movement are a mass phenomenon. Patterns suggest a new low awaits the big oils.
XES
THe XES Energy Service index displays the same formation. It did not have a big wave four bounce as the reality of lower prices sunk in.But the CCI indicator has had some relief with an up move and is now turning down again. Taking out the Wave 3 low will initiate the move to a new low.
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