AND BRIEF MARKETS UPDATE (2:30 pm EST)
Crude oil moved lower today and broke below that $95 support, but overall momentum remains strongly bullish implying that this downward move could be short-term. Nevertheless, the price is pushing beyond my stop loss limits and I am going to bail out and sell my long position at this point to avoid the risk of further loss. There is a cycle pattern that may be occurring here which typically manifests as a sudden sharp price drop that briefly interrupts a rally and then quickly snaps back up with a resumption of the rally to higher levels. This may give us an opportunity to make back this loss shortly. I will discuss this in more detail in a weekend post.
Fear in the broad stock market and precious metals market has subsided a bit today, but it is still a little too early to gauge investor confidence going forward from here. Momentum has not changed in these markets (gold and silver remain strongly bearish and the broad stock market is mixed) and we are out of all markets at the moment.