Crude

Crude took back yesterdays pounding and put in a bull engulfment candle to kick start its C leg. Another monster range day at $4.53, or ES equivalent of 90+ handles. Volume was just as impressive, the strongest since 5/7/09.

They finished off B in globex and left no doubts we were in C. It appears that we should be fairly close to completing 1 of 5, if my assessment is correct. You could argue that we are currently tracing (3).

AB=CD at 72.29. Retracements from the high include the 61.8% at 68.95, which is basically the high of A. There is also confluence around the 70.30 price with both the 70.7% and the 78.6% projection of A.

The one bar daily projection is all the way up at 74.62, which currently seems like a stretch, but you never know.

This market is very buyable after it traces out its 2 wave IMO. I will be looking to put on a long line via calls. As always, please due your own due diligence before placing wagers.

KoolsTools Time Cycles say we could have a daily peak tomorrow. This might coincide with the completion of 1. The next major peak we should be watching for doesn't come in for another 11 trading days.

Again folks, this doesn't mean price is going up for the next 11 days. It means that in 11 trading days, wherever price is at, should be a peak day. Price could very well be lower for the peak.

This is my trading chart. Wanted to show you what the entire days action looked like off the 62.70 L. That vertical blue line shows why I have (1) and (2) labeled the way I do in the above chart.