Sound Money Commodities Are Warming Up

Yes we have a pop up in gold! But look around, other sound money commodities are trying to find a bottom.

Below is the crude oil Sweet Light chart. Supply is being bet with demand, and you see this with the higher volume on the short thrust. When price moves less on higher volume this is Wyckoff law of ‘Effort vs Results‘ at play, so higher volume with poor price movement is less results for the effort by the shorts hence the longs are stepping up.

However this does NOT mean lower prices are over for crude, it does mean if we get a sell off on lower volume this would be the shorts last roll of the dice. A low volume sell off would show the market the bears have run out of juice thus allowing the bulls to accumulate with some safety. A Wyckoff trader would like to see a wider trading range proving accumulation is present. Watch and waiting!

Crude is a large part of the CRB index, crude turns or slows, so will the CRB index.

CRUDE

Some interesting comments in this video…about China!

Just a reminder that Wyckoff logic and readtheticker.com are not one hit wonders, this video was spot on!

Investing Quote…

…”In the long run commodity prices are governed by one law – the economic law of demand and supply”..

Jesse Livermore

..”Money couldn’t buy friends, but you got a better class of enemy”..

Spike Milligan

..“Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria.”..

John Templeton

..“One must search through a maze of complex and contradictory details to get to the significant facts … Then he must be able to operate coldly, clearly, and skilfully on the basis of those facts.” The challenge for the successful speculator is “how to disentangle the cold hard facts from the rather warm feelings of the people dealing with the facts.” Moreover, “if you get all the facts, your judgment can be right; if you don’t get all the facts, it can’t be right”…

Bernard Baruch

..”Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected”..

George Soros