Will Demand Collapse Faster Than Supply Contracts ?
Is There A Biotech Connection ?
The Next Chess Move
Everyone’s good at telling you what the problem is; it’s a financial collapse !!!
The hard part is, how to position for the unknown at least for those of us in the serfdom.
The so-called elites, the oligarchs know (or think they know) exactly what’s happening.
They move their chess players and we move ours. The goal is to position for (potential) profit with the caveat we all make it out on the other side.
Personal Anecdote (skip to XOP Analysis if not interested):
I have a close family member that’s been a school teacher for about twenty years. He/She is well known in the local town and has a significant number of connections.
Because the children being taught are typically small, ranging from kindergarten to fourth grade, those kids tend to reveal all that’s happening at home.
Their revelations include financial status (or lack of), political leanings as well as abuse that’s happening physically and sexually. It’s the real deal.
As an aside, any potential crimes are fully documented and reported.
The point here is, this contact has revealed that children, family members and extended family members are severely ill or dropping dead after receiving an ‘injection’.
However, the surviving family members are just too stupid (or afraid) to put it together; the injections are causing the deaths.
It’s some kind of mental block and/or mass hypnosis.
It’s wrenching and heartbreaking.
However, at the same time and this is where it gets harsh, for those of us in the faith, we know Biblical scripture tells us the Lord delights in hiding the truth.
One has to diligently seek out truth. It takes work and a prayerful form of neural plasticity; the ability to be mentally flexible.
Truth is not for the lazy, the incompetent, the coward.
Why should immutable truth come to a coward or idiot that does not diligently seek it?
The rapidly increasing deaths may be passed off by the mainstream media as some kind of new ‘variant’.
That ‘variant’ brings us to the market at hand; oil and oil exploration XOP and possible biotech connection.
As with biotech SPBIO, and its leveraged inverse fund LABD, so too we have Oil & Gas Exploration XOP, and leveraged inverse fund DUG.
The long term un-marked, weekly chart of XOP:
Next, we have price action contacting a multi-year trendline:
Moving closer on the weekly, we have a terminating wedge:
Terminating wedge(s) typically result in price action moving opposite of wedge formation.
In the case above, that would be a reversal to the downside.
This past week’s bar was a reversal. It’s a potential signal the formation is complete and XOP is ready for the downside.
Of course, if XOP is about to head lower, inverse DUG is about to head higher (not advice, not a recommendation).
Daily chart of DUG.
The Biotech (SPBIO) Connection:
The weekly chart of SPBIO, shows momentum on downward thrusts has slowed. The black dashed arrow’s trajectory is becoming more shallow:
If biotech is going to retrace, the solid blue line is a Fibonacci 38%, as well as potential location for an up-thrust (downside reversal).
A new variant (which is likely injection injury) may be used by the media to drive biotech higher to the retrace level.
We’ll have to wait and see if there’s a reduction of the population as we head into the end of the year. It’s a known fact, the injection destroys the immune system … so far, permanently.
That would be a factor in the up-coming flu season.
We used to have a regular flu season … but that all disappeared (re-branded, actually) with our current situation.
Nearly all recessions have started with rising oil prices.
However, we’re not in a recession but an all out collapse. The economy is contracting at the fastest rate in U.S. history.
Our current position is demand will collapse faster than supply restriction (not advice, not a recommendation).
Or, we could still have rising oil prices but it won’t be enough to offset the cost of drilling and production; lack of demand may be overwhelming.
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