Wealth Creation Through Natural Resources
Back in January and February when the crowd was extremely bearish on crude oil we witnessed a striking bullish divergence in the strength of energy stocks. This relative strength from energy stocks proved to foreshadow the bottom that crude oil … Continued
We are seeing a very interesting dynamic take hold in crude oil futures markets: In recent weeks we have witnessed a confluence of forces; speculators have covered shorts in large numbers while also aggressively adding to long positions, meanwhile, producers … Continued
OPEC crude oil production surged by roughly 1 million barrels per day in March after consecutive months of decline: Meanwhile, there is some question about US production declines as the data doesn’t paint an entirely clear picture. Production is … Continued
Weekend Commodity Chart Wrap 4/18/2015… Gold with realized volatility (top) and implied volatility (bottom) Both realized and implied gold volatility have been in decline since the beginning of the year. The GVZ (CBOE Gold Volatility Index) is currently pricing … Continued
Oil services stocks as represented by the OIH (roughly 1/3 of the OIH is comprised of two names, HAL and SLB) have been hot for the past month, gaining nearly 20% since the March 16th low: This is the 3rd … Continued
Despite crude oil’s recent rally global demand is still expected to downtick for the next few weeks before surging in May in anticipation of the summer driving season: Crude oil traders are clearly looking past the current bearish market dynamic (record … Continued
In the last 6 months WTI crude oil has fallen 5% or more on a single day on 4 different occasions and on each of these occasions it has risen the following day (including gains of 5.03% on December 1st, … Continued
Daily commodity chart wrap 4/7/2015… WTI Crude Oil (Daily) WTI tested the $54 resistance level today. While this is at least the 3rd time this level has been tested during 2015, it is the first time since February so … Continued
The $78-$80 area has been a huge price magnet in the XLE since the oil crash last September-October, and it is no accident that price has paused in front of this level for the past couple of weeks: In many … Continued
Daily commodity chart wrap 4/1/2015: Copper (Daily) Clean bull flag in copper with a hammer candlestick off support today. Breakout above $2.80 targets $2.95-$3.05 resistance zone. Gold (Daily) Incredibly bullish trading session for gold today. $1205 offers some … Continued