Crude

Monster day in the crude pit. Price finished 4.5% higher on heavy volume. Range was $4.25, or 85 handle ES equivalent.

As stated in the weekend update, price needed to "start higher right now." It certainly did. It also appears that we had a L-L-L cycle that played out, as mentioned this past weekend.

Price action broke the mid-line , took out the 68.38 H and the 69.40 H in impulsive fashion. Notice also that it broke free of the channel itself in a nice apparent iii wave.

If assessing structure correctly, we are tracing a micro degree [4]th of a sub-minuette iii wave. This suggests higher near-term price. We should have another micro leg higher that would complete iii of v.

Targets include: 72.40, where [5] = 2.618 of [1]; 73.64, where [5] = 61.8% of [1] - [3]; and 73.25 is where iii = 2.618 of i. Basis October contract.

Bottom line - [5] should finish fairly quickly, thus completing iii. I maintain my bullish bias near-term.

Price is just like your golf ball - sometimes you just have to talk to it :)