Back in June we called the pending bottom and rally across the commodities complex, and profited on multiple Crude Trades. Now, after a healthy and textbook correction in CL, numerous indicators are aligning for the next wave higher.
1 - Geopolitics are in play with North Korea continuing to advance it's nuclear weapons testing at the command of their globalist masters. There is no War Premium yet it oil, but we are betting this will soon change.
2 - China has announced the launch of a Crude Oil contract based in Yuan and convertible into Gold - This will have serious implications for the USD + appears to be the next domino to fall in a planned and coordinated effort to weaken the USD by the Globalist Central Banksters. Expect Weaker USD and higher dollar priced Commodities over the coming months/years.
3 - Very constructive wave structure and chart action.
A - We have clearly broken above 2 of 3 downtrend lines from the beginning of the year, which is signaling a bottom and end to this selloff. If this is the case, we would have formed a "Higher Low" on a long term basis at the $42 level and should expect to attack & break above $58 as Wave 3 develops.
B - Clearly impulsive 5 wave pattern followed by ABC correction which found support at 50% retracement line.
4 - Commercial Trader Activity is signaling a imminent rally. We monitor and Rank Commercial & Fund Relative positioning and activity factoring in a volatility component. After this week's COT report we can see that the Commercials have added a net Long 104k futures contracts over the past 4 weeks which scores a incredible 93% on both a 18m + 5yr basis.
Since 2000, this set up has seen the 70th percentile movement of $4.43 on the upside, and only a (.86) on the downside over the following 20trading days. So our pot odds are almost 5-1.
All of this means it's time to lay down a bet - So this is how we will play it: (As we are writing before the market opens, prices may slightly differ to what we have listed below)
1 - Go Long 1 Nov CL Future @ approx 48.
2 - Buy the Nov 48-44 Put spread which should cost approx $1.35.
In the event we are wrong & prices reverse lower, be sure to cover your short $44 put on a close below $45.
Our minimum Price target here is $52, back to the recent highs, so we are risking approx $1.35 to make $4, which is 3-1 R/R. We are giving ourselves 44days for this trade to work as if things begin to heat up with Korea we way cash in well north of $52.
Good Trading to All
1 - Geopolitics are in play with North Korea continuing to advance it's nuclear weapons testing at the command of their globalist masters. There is no War Premium yet it oil, but we are betting this will soon change.
2 - China has announced the launch of a Crude Oil contract based in Yuan and convertible into Gold - This will have serious implications for the USD + appears to be the next domino to fall in a planned and coordinated effort to weaken the USD by the Globalist Central Banksters. Expect Weaker USD and higher dollar priced Commodities over the coming months/years.
3 - Very constructive wave structure and chart action.
A - We have clearly broken above 2 of 3 downtrend lines from the beginning of the year, which is signaling a bottom and end to this selloff. If this is the case, we would have formed a "Higher Low" on a long term basis at the $42 level and should expect to attack & break above $58 as Wave 3 develops.
B - Clearly impulsive 5 wave pattern followed by ABC correction which found support at 50% retracement line.
4 - Commercial Trader Activity is signaling a imminent rally. We monitor and Rank Commercial & Fund Relative positioning and activity factoring in a volatility component. After this week's COT report we can see that the Commercials have added a net Long 104k futures contracts over the past 4 weeks which scores a incredible 93% on both a 18m + 5yr basis.
Since 2000, this set up has seen the 70th percentile movement of $4.43 on the upside, and only a (.86) on the downside over the following 20trading days. So our pot odds are almost 5-1.
All of this means it's time to lay down a bet - So this is how we will play it: (As we are writing before the market opens, prices may slightly differ to what we have listed below)
1 - Go Long 1 Nov CL Future @ approx 48.
2 - Buy the Nov 48-44 Put spread which should cost approx $1.35.
In the event we are wrong & prices reverse lower, be sure to cover your short $44 put on a close below $45.
Our minimum Price target here is $52, back to the recent highs, so we are risking approx $1.35 to make $4, which is 3-1 R/R. We are giving ourselves 44days for this trade to work as if things begin to heat up with Korea we way cash in well north of $52.
Good Trading to All