Not Happening

There’s no oil bounce.

Not happening (not yet anyway).

Instead, oil looks like it’s heading off a cliff.

Weren’t we supposed be forming some kind of ‘tradable bottom’ because the sellers were accumulating?

That kind of bottom-think may have worked under more ‘normal’ conditions.

However, it should be obvious to all (with some still clueless), we’re not in normal conditions.

Hedge funds dumping oil, giving a heads-up, demand collapse is either coming or is already here.

Great Depression 2.0

Presented many times on this site (click sidebar ‘Great Depression 2.0’, for a list of posts) that we’ve likely gone straight past ‘recession’, into depression (not advice, not a recommendation).

If that’s even remotely true, we should see demand collapse in heavy duty areas of the economy like trucking, right along with job implosions.

Oh, wait, here it is … and here it is, again. 🙂

Back to the oil patch. Let’s include exploration and production (XOP) posting lower as well.

Oil & Gas: Exploration, Production, XOP, Daily Close

The last position short XOP, via DRIP was stopped-out for a minimal -1.24%, loss.

Re-positioned via DRIP during yesterday’s session (not advice, not a recommendation).

Trade labeled as DRIP-24-02.

The purpose of the prior channel notation is to show, XOP will at times exhibit channel (trending) behavior.

There’s only one right side (verified) contact on the latest channel, the magenta arrow.

However, the overnight market (10:57 p.m., EST) has oil futures continuing lower.

The expectation is for some follow through (downward) on the XOP, at the next session (not advice not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279