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Morning Call: Oil Clears $130.50 And Falls Off Record Highs

May 27, 2008 9:47 AM

This could be difficult to trade as it never made a new low, so I am very skeptical, at best, longer term. Oil should stay lower now that it has cleared my number of $130.50. Without news, that high should hold at least until week end, if not longer. Be careful at 1381.50 until it clears…Use today’s low as a guide to hold…

We also have Consumer Confidence at 10:00 EST. That is likely to be very ugly…

What comedy on CNBC “the traders are scratching their head why oil is falling”. Uhh, no they aren’t unless they started trading yesterday. As I said, “if oil clear $130.50, pressure should be applied”.

Written by Tom@StockBlade.com · Filed Under SP Futures 

Comments

22 Responses to “Morning Call: Oil Clears $130.50 And Falls Off Record Highs”

  1. Tom@StockBlade.com on May 27th, 2008 9:53 am

    It hit 1381.50 on the nose….be careful here…if we reverse here after Consumer confidence, I do not like the lows we have put in

  2. Tom@StockBlade.com on May 27th, 2008 9:58 am

    It backed off my number of 1381.50 big time, thus far., currently 1378. if we hold below 1379 when consumer confidence comes out - watch out below…

  3. Tom@StockBlade.com on May 27th, 2008 10:03 am

    Hmmm, Consumer confidence plunges and we cleared 1381.50 anyhow…i went long once it cleared…but i dont get it…this number is ugly

  4. Tom@StockBlade.com on May 27th, 2008 10:04 am

    New homes sales were up 3.3%….perhaps the reason…the number is nonsense because we are in a seasonably strong time, but whatever

  5. Tom@StockBlade.com on May 27th, 2008 10:08 am

    We have not seen the high

  6. Tom@StockBlade.com on May 27th, 2008 10:10 am

    We will clear the 1384 high…I am almost certain of it

  7. Tom@StockBlade.com on May 27th, 2008 10:12 am

    I do NOT like the lows we put in Friday - But this shouldnt be the high either…

  8. Tom@StockBlade.com on May 27th, 2008 10:14 am

    Short term players are selling…this is timing only i believe…we are going higher

  9. Tom@StockBlade.com on May 27th, 2008 10:21 am

    ok, looked to see whats going on…we have a daily downtrend line about where todays high is…if we can push higher through it, we should spike.

    The problem here is i do NOT like the lows. If had put in a decent low, we would be going up up up, we didnt…

  10. Tom@StockBlade.com on May 27th, 2008 10:26 am

    Hmm, i still see nothing to be concerned aout …yet…we could check down to 1379 area…maybe…the trade would be long there i believe

  11. Tom@StockBlade.com on May 27th, 2008 10:29 am

    If we get below 1378 by 10:30 this could be a big problem… other than that, this appears timing only

  12. Tom@StockBlade.com on May 27th, 2008 10:35 am

    I should have known the chart said wayyyy to early to chase…this may take a lot of time to retest the high

  13. Tom@StockBlade.com on May 27th, 2008 10:41 am

    The 1, 2 and 3 minute players are trying to trade this down, they will cover if we can move up…

  14. Tom@StockBlade.com on May 27th, 2008 10:48 am

    Yawn, there we go…2 point pop off the low

  15. Tom@StockBlade.com on May 27th, 2008 10:58 am

    If we can stay up in this 1381 range at 11:00…we are likely to immediately retest the high

  16. Tom@StockBlade.com on May 27th, 2008 11:03 am

    ok…here we go…1382.50

  17. Tom@StockBlade.com on May 27th, 2008 11:03 am

    If we reverse under the high, be careful…

  18. Tom@StockBlade.com on May 27th, 2008 11:17 am

    We reversed at a high of 1382.50…very weird day…I am not sure of the direction here…if we get under the opening low, I suspect big trouble

  19. Tom@StockBlade.com on May 27th, 2008 11:18 am

    Oil spiked up $1.00 off the low, I think thats what happened…same bs today as Friday…oil oil oil….makes it dang near impossible to trade here as the market moves a LOT regardless of what the SP charts say…when oil moves

  20. Tom@StockBlade.com on May 27th, 2008 11:22 am

    Well, I am not going to attempt to trade sp and oil all at the same time…this looks like its going to be the same nonsense as Friday…oil moves so goes the market without any notice or reason..

    Be very careful if we clear 1375.50….As i warned earlier…i do NOT like any of the lows put in - at all.

    Good luck

  21. Tom@StockBlade.com on May 27th, 2008 11:35 am

    Oil is the issue…this is going to be VERY difficult…you have to watch oil. It fell 5 points out of nowhere…looked at oil…it was up $1.50 off the low…

    Almost impossible to trade the market unless you watch oil…moves come out of seemingly nowhere…

  22. Tom@StockBlade.com on May 27th, 2008 3:33 pm

    It made a reversal off the low right after I had to go….Oil spiked much lower once $130.50 cleared and caused the reversal in stocks…..I said on Thursday that $130.50 was key on oil…and if cleared it “should” spike lower….Bingo

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