Easy come, easy go. The gains racked up by Monday’s short-squeeze were reversed today when the broad averages fell steadily off a bull-trap high recorded by index futures during the night session. I’ve characterized the brazen distribution going on as reeking like dead fish, but the inevitable big move down awaits the day when bears — the main source of buying power these days — have covered the last share of their short positions.
When the Last Bear Has Covered…
- May 17, 2016, 10:56 pm
Care to share any downside targets you may have for oil? After your upside target of the low 50’s is met do you possibly see it correcting back into the 30’s? Can it possibly retest lows? Sentiment is super bullish right now.
Sentiment is something to be faded, Jim, and you can never go far wrong. I see crude trading in the (huge) range $30-$50 for a very long time. All bets are off, though, if terror strikes. RA