MBWealth’s Commodity Blog

Based on the last two day’s action Crude oil appears to be making attempts at higher ground. We will be late to this move because I do not trust it and need further confirmation before getting bullish exposure for clients. A settlement above $79.50 would be the first hurdle. Natural gas will close 8% higher this [...]

Crude recovered the two previous day’s losses gaining 1.8% today. We expected to see the 50 day MA give way and prices to trade lower, we were wrong. We would move to the sidelines until Crude gives a clearer signal on direction. We expect a trade above $79.50 to signal higher ground and a trade [...]

Regardless of the color of the book traders did not like what they saw. Crude traded below the 50 day MA but did manage a close above that level; in September at $76.30. We would be selling rallies if forced into the market still thinking there is more down side.  By the conclusion of the week [...]

Weakness in commodities what to do? Here are a few ideas…get short, exit longs or be prepared to buy from lower levels. We think Crude oil and the distillates have put an interim top and expect prices to fall back. We reserve the right to change our mind if September closes above $79.50. We expect [...]

The direction the markets move this week will likely determine where prices go the next several months. We suggest booking profits on longs in Crude thinking we could get a set back. We would rather be on the sidelines wanting in the market than in the market wishing clients were on the sidelines. Prices are [...]

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From my perspective indices are in the driver’s seat and commodities are looking for guidance. Crude is set to finish the week higher by about $3 closing out near a three week high. We assume that if the bulls in the stock market can push or even hold indices at current levels prices could test [...]

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Oil started the week at $76 and looks to end the week around $76. The trend line that was broken on Tuesday that has previously served as resistance now has become support. Aggressive traders could buy dips that hold that line; at $75.75 in September. It is a positive sign oil held up in the face [...]

Reform is rejected as “Mr. Market” does not like the coming changes. Oil’s performance today was similar to yesterdays with a large trading range; prices closed virtually unchanged remaining above the 50 day MA. Continue to use the 50 day MA as your pivot point; in August at $76.25. We expect oil to trade between [...]