Thursday, January 27, 2011

Heating Oil on Fire

HO's on fire and dragging the rest of the complex up with it. Imagine how WTI and Rbob would be trading if the Euro/ SP and HO were coming off.
The big picture;
Active Mo. Weekly
click to enlarge
A few very important things jump out on this chart; the 50% retrace of the A is just overhead at 2.71 and the . the c=.618 of the a  at 2.70 . These charts are slightly different from a strict spot mo. chart so at the 2.70 level HO will have retraced 52% of the actual spot month  move down, still within a rough 50% zone.

This move up looks like B wave and acts like a B wave ; it's choppy, hard to count, and taking forever.
Expect the C wave down to begin any moment. It should look a lot like the A after all the permutations of the B.

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