Memorial Archives

A Look at Crude Oil
posted Nov 22, 2005 at 06:06PM

Crude Oil Daily

Note as well the bullish divergence on the MACD Histogram

Crude Oil Long Term

The chart below is also bullishly constructive.

COT Data vs. Crude Price


I very much like the techncial condition for crude as compared to say gold. All in all, crude has held up very well considering the post Katrina euphoria drop. And don't forget we had 25-30 countries tapping into thier strategic reserves to help drop the oil price. Can you imagine the POG if 30 central banks started selling gold?

Of course we are comparing apples to oranges here. The defining characteristic of gold is that it is beautiful. Beauty - for men the ultimate drug. Don't be fooled by the fact that gold is often championed by the religious fundamentalists of the financial world. If societies actually implemented some of the economic theories espoused by these people, we would be back to growing our own crops. Beauty is what makes gold the ultimate speculative trading vehicle...and there is no safety net. If all the gold in the world disappeared tomorrow, the world would carry on with hardly a notice.

Oil is a different animal all together. Black and ugly and gooey, it has nothing going for it; exceptfor the fact that it represents energy. And without energy a modern society might as well pack it up and head back into the caves and superstitious blabbering of their great fore-fathers.

Bullet Bullet Bullet