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Oil Continues Breaking The Ice

Published 12/30/2014, 11:08 AM
Updated 07/09/2023, 06:31 AM
CL
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Crude oil's sharp decline, largely marginalized as a welcome 'tax cut' for cash strapped American consumers searching for easy explanations, continues to break the ice of support with alarming speed (chart). A close below 53.48, a likely outcome, generates a downside target of 30-34.

Do not be deceived by media hype. The invisible hand continues to distribute weakness. This combination won't change the trend.

Energy companies are hurting. Banks 'long energy', likely with leverage, will be hurting soon. What happens when this setup is combined with an unexpected rise in interest rates? Panic liquidation.

The public needs to understand the risks inherent in bank deposits. Few do.
Crude Oil

Latest comments

Wrong already.
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