Tuesday, July 11, 2017

07/03/17 #CrudeOil $USO #Free

Crude Oil
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Crude Oil's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.

Subscriber Comments

Chart 1


Price and Volume Matrix

LTCO and LTREVO (chart 1) define a profitable aligned down impulse since May (chart 2). Compression, a sharp decline in +BW, often precedes trend transition. Traders that locked profits from week 2 to week 5 are letting their profits run within a trade measured as much by price as time. USO down impulses have averaged 20 weeks since 2006.

Chart 2


The crude oil trade and trends are monitored weekly in Trading Notes.

Price and Leverage Matrix

LTCO and LTLO define focused bear opportunity since May.  Bearish alignment is consistent with price and volume.

Crude's DI of Q3 favor the onset of a longer term, bearish oscillation/cycle (chart 3).

Chart 3


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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.