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Review Of Gasoline

ByEric De Groot
Published 02/06/2015, 07:16 AM
Updated 07/09/2023, 06:31 AM

China's reserve requirement cut, a policy move expected to support additional lending, has the energy bulls calling bottoms in various energy markets. The bears, having enjoyed a steady decline since July 2014, must respect the potential for at least a short-covering rally.

This decline, driven by a growing bearish majority, lead by oil's collapse, and anticipated by the invisible hand, has frustrated the bulls (chart 2). As long as the world economy continues its quiet meltdown, an unexpectedly implosion from the periphery to the core, gasoline's downtrend should continue defying bullish expectations. Those willing step in front of that moving train by rushing to buy oil or gasoline without technical confirmation is more gambler than investor.

No market, however, moves in a straight line. Today's bear phase, originating in June when everyone was bullish, will transition to a bull (phase) at some point.

The professional investors must profit by anticipating future trends and events rather than chasing old news. This is done by following the invisible hand or message of the market. That message, the simultaneous study of the the cycle of accumulation and distribution (trend), the distribution, movement, and participation of leverage (leverage), time/cycles, and human behavior that excludes opinions is defined below:

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