Crude

There was an upside explosion in the crude pits today. Range was a nice $3.18 on above average volume.

I'm not entirely sure whether we came out of a triangle or not. It really doesn't matter, and we wont really know until down the road.

What does matter is price action has been impulsive off the 68.88 L. We either ended [e] or likely [2] there.

I'm still expecting price to reach the 79.42 target area. I would like to think that we could accomplish that in short order, but nothing goes straight up. We are due a retrace.

If minor B is indeed complete, the minimum upside objective is 83.54. This is where C = 61.8% of A. C = A around 100.

We also have the 38.2% retracement of the all-time high in the same area.

Prices basis November contract.

I read a headline from our idiot financial media that said "the stock market was helped by the strength in oil." Since when is $78 crude oil a good thing? Did anybody notice RBOB? I saw where it was up over 5% at one point.

So this is a good thing that should be cheered I guess. The tranny's don't seem to mind either. Crude is up about 70% since February. Seems pretty good unless your comparing it to the tranny's - up almost 90% since March. Whatever.

If I'm right on structure, then the tranny's have much higher to go, because structure suggests crude isn't finished.

How about that trade I put on last night :)