Crude

After one hell of a thrust out of a likely triangle, crude took a rest today. Range was $2.08 on slightly better than average volume.

The huge confluence of resistance that was discussed in last nights update was to great, as price was turned back - temporarily in my view.

I am concerned about my degrees, as I noticed that EWI had this counted as sub-minuette degree legs for the triangle. This is two full notches below mine.

You may or may not remember, but I had already ratcheted down my degrees about 5 months ago. I am having a hard time believing that the crash move off the highs in 2008 only registers as a minute degree. Leaving my degrees alone for the time being.

I have attempted to count this leg off the 68.32 L. It's not easy when the waves just keep subdividing.

In all honesty, it really doesn't matter. As long as you can discern where the larger degrees are you should be in good shape.

I am showing that we ended a minuette degree (iii) wave at the 80.40 H. It is possible that it may very well be a minute degree.

I have placed the retracement levels on the chart.

We had a beautiful Bullish Bat pattern that came in nicely at today's lows.

I show this on my 144T chart, which is the chart I use for entry's in this market.

I was lucky enough to get long 78.38. I took the 1st contract off at 78.55 and then foolishly moved my stop to 78.46.

I was assuming that the candle with the 78.48 H was a wave 1, so I moved my stop 2 ticks below it. I guess not, as they printed 78.45, stopping me.

There was another monster trade I would have had and the same thing happened to me. Crude traded very badly today in my opinion. Sigh.

Bottom line - if my interpretation of structure is correct, we should see a wave (iv) corrective, then more push. Although this may turn out to be a normal 4 wave (slow grinding back and forth), I suspect it will be short lived and brief.