Friday July 29 2022
I mentioned that when a financial item starts making front page news in the general media, it is usually a sign of an impending top or bottom.
That is exactly what has happened with the US Dollar and crude oil. My column published here a week ago suggested you thank Angela Merkel for temporarily lower oil prices. My reasoning is that her closure of coal and nuclear plants and resultant reliance on Russian gas and oil dropped the Euro to a new low. Priced in dollars oil fell from 125 to 95.Now the Dollar has hit a top and selling off. And crude oil is starting another rally, hitting 100 today.
the arrows show the top in the Dollar and bottom in oil measured by the oil ETF, USO. I drew the new downtrend for the buck on the mai oanel and the new ascent for USO below. Expect a re re test of that 125 high in oil.
Here is WTIC in the main panel and USO at bottom so you can see how USO does indeed track
WTIC versus USO
Apache
APA dropped right to the 200 day Moving Average and bounced. Look for a re test of 52.
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