Tuesday, November 30, 2021

WTI Update

 WTI it's been too long. LOL

Short term the risk of a $6 or $7 bounce is pretty high over the next several days.

See the hourly chart below and the positive divergence on the RSI, and the "right look" of the move down over the last week from the label -2-. the fib .78 retrace.

Longer term I think the risk remains significantly higher possibly exceeding the old highs at $158. Why not? Who can deny the inflection point completion of the down move last year. 

There IS a fib .78 retrace of the last leg up on the (daily chart labeled 5). Right here.  Supports short AND possibly medium term risk higher. 

Or do we get a deeper longer term retrace of the whole move up over the last year? Like to the mid $50's?  See weekly bar chart.

So above $75 an overlap of the assumed -1- and risk remains higher, vs. taking out todays low by .half a buck points lower longer with the previous low $61.85 targeted next.

Hourly

Daily


Weekly




Saturday, November 27, 2021

EU Declares Omnicron Risk High to Very High

 From one of the very best sources of pandemic information, Croftsblog:

given its immune escape potential and potentially increased transmissibility advantage compared to Delta, we assess the probability of further introduction and community spread in the EU/EEA as HIGH. In a situation where the Delta variant is resurgent in the EU/EEA, the impact of the introduction and possible further spread of Omicron could be VERY HIGH.  In conclusion, the overall level of risk for the EU/EEA associated with the SARS-CoV-2 variant Omicron is assessed as HIGH to VERY HIGH.  

https://crofsblogs.typepad.com/h5n1/2021/11/threat-assessment-brief-implications-of-the-emergence-and-spread-of-the-sars-cov-2-b11-529-variant-of-concern-omicron-f.html

Thursday, April 22, 2021

Biden Climate Plan and Global GDP

 KUDOS, and I mean it, to Biden. Real implementation will be incredibly difficult and failure will mean doom (don t think your grandchildren are going to survive in a world without plankton).  By next election cycle the path the world is on will be visible to all and most likely we will see spiking carbon emissions, devastating weather catastrophes, the need for even more investment, carbon taxes, and even more weaponizing of painful choices.

 The pandemic definitely decreased global emissions. To stay under the limit on future emissions needed to keep climate temps under the 1.5 centigrade increase, that same decrease in emissions Y on Y has to be achieved every year until 2030.

Reality No.1)  Co2 and other greenhouse gas emissions have a very high correlation w Global GDP, .87 to .93

Climate change is unfortunately global so don t bother with arguments based on regional data. In the United States some progress growing GDP while cutting emissions has been achieved in some locales. Most of the progress is a result of a one time switch from coal to nat gas by utilities AND relatively poor main street economic performance since 2007. Yes, it is true that there is evidence (weak) of an uptick in consumer interest in sustainability in very developed countries as GDP grows, but half the worlds people can t wait to get a stove and AC.

 Reality No.2)  The multi trillion dollar stimulus in the pipeline is going to significantly increase Global GDP, unless everybody dies. April IMF forecasts is for 6 % global growth in 2021, and 4.5% for 2022.  IMF forecasts for the next few yr.s have been trending higher each Q. 

Global GDP in 2019 grew 2.3%, yet 2020 was tied for the hottest year on record even with the pandemic. Spending on the infrastructure to transition to a green economy will be slow to have measurable effect on emissions yet the stimulus is immediate.

Additionally, Green infrastructure spending ( think "good jobs" ), will likely have an immediate multiplier effect greater than what we've seen over the last 20 yr.s, ramping the marginal propensity of lower and middle income households to consume. Rates at the lower bound, moderating the crowding out effect, will add fuel to the fire.  

Reality No.3)  Much hope is based on switching the transport sector out of Internal Combustion Vehicles to  EV's.  It makes sense, it's a thing, big Fed investment committed, unfortunately the auto fleet in the US has a 15 year life span, EV's represent under 2% of that.  See below for Global % sales history.

 Meanwhile the total Global Auto and Light Truck Fleet sales clocks about 70 million.

Even with radical gov incentives like BUYING and DESTROYING your 2021 Sierra Pick Up  and its SUPER unlikely to happen this term, EV s won't make any significant dent in the fleet before 2030 or even 2040. Sorry. 

Reality No.4)  The next 5 to 10 years are going to see the fastest growth of Co2 emissions ever, most likely exceeding current projections of worst case scenarios, as a result of the above. 

IS there a solution? All the above we can do but more, and most importantly LESS. Less global GDP growth has to be engineered in there somehow, aimed at anything NOT actively contributing to Zero Emissions growth.  A very painful decade.

 A great start would be for the US Fed to stop forcing rates down.  We've  engineered and directed our growth with monetary, fiscal,  tax policy, subsidies, grants,  etc. for decades. We need to engineer this economy as if we are in a world war, which in fact we are.

Now our survival depends on getting it right. 


 






 






Monday, December 7, 2020

Medium Term Crude Resistance

Just a little resistance in the form of Fib ratio and negative RSI divergence.

Rolling 1st month 4 hr. bar


click to enlarge

Thursday, April 16, 2020

Long Term WTI Counts Suggests Bottom Near

The Elliott Wave count I have on the long term monthly chart has very strong fib relationships and
structure suggesting a high probability low either at 19.55 or 18.25.

The chart reveals a pattern that can be described as either an ABCDE  declining triangle with the expected fib relationships between the legs, or alternately if the structure is a simple ABC the C = 50% of A at 19.55




click to enlarge
Daily

 While not shown on the above chart there is repeated Pos divergence on the RSI.

Wednesday, January 16, 2019

WTI Update- a 4 Handle Future?

From my last post Dec 28, "Before we get into next year, short term the WTI has a good deal of upside risk to between $48 and $54, with $51.50 being my favorite cluster of resistance/ and a measured target for a 4th wave."

Hourly
click to enlarge
As can be seen, WTI is in the high side of that range and evidencing some recent weakness.
It does have a "look" that could produce a higher high at the top end of the range there, or even somewhat higher.  However the greater risk, short and medium term is to the downside from here. 
It may turn out that a "b" wave chop down is in the cards with a subsequent "c" wave up,  but that kind of move can be deep and retest the lows .
See above Fib retracements, particularly the .618 and .78 


Longer Term Risk For Bulls AND Bears

The Decline
click to enlarge

While the labeling of the subwaves above can be argued,  including whether the wave down is completed yet or not,  the $34 thrust down is probably NOT a completed correction.
At least one more wave down can be looked for, of similar degree, even in a "correction".  Even if this bounce carries as high as say $65.
However.

The Elliott count above is a not quite complete impulse wave down. So longer term likely more to go with lots of 4 handle time.  

Of course in Elliott Wave there is always an ALT possibility. 
Have fun.