The cycle I’ve pointed out dozens of times for natural gas is continuing to behave beautifully.
Uncomfortable Gas Pains
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Crude Positioned to Slide (by LZ)
XLE has zigged while CL zagged. I see a gap: crude already trading at a level that could justify XLE down in the $85 area, and crude looks like it’ll drop to $62 per barrel if it makes a new low.
Risks for crude prices: deregulation under Trump, peace with Russia ending sanctions (my guess is oil and gas sales would be resumed first), and the ongoing slowdown in major economies from Asia to Europe.
Dumb, Baby, Dumb
Although I have been painfully aware for my entire life how stupid most people are, and how gullible, feckless, and lacking any sense of history the body politic tends to be, I still find the oft-repeated phrase “Drill, Baby, Drill” to be particularly vexing.
First, these dimwits don’t recognize that it is a direct descendent of “Burn, Baby, Burn,” a celebration of lighting U.S. flags on fire during the Vietnam War era, and second, because the notion is predicated on the lie that the U.S. is somehow stymied in its production of crude oil and is at the mercy of the A-rabs. Umm, yeah, doofuses, the facts disagree:
Broken Rhyme On Natural Gas
I did a post a month ago looking at the triangles on Oil & Natural Gas. I’ve been following both since, amid the intermittent turbulence in the Middle East, and the rhyming triangles scenario I laid out in the post likely failed on Friday on natural gas. I’ll cover that further down but first I’ll review where we are up to on oil.
On the WTIC chart the triangle that broke down had a target at a retest of the May 2023 low at 63.57, and that remains the case. Invalidation of that target would be at a break back over triangle resistance, currently in the 81.2 area.
(more…)Tesla Power!
Just as Amazon makes way more off its cloud computing services than it does off books, it seems that Tesla, known only for its cars, is doing exceedingly well in energy-related products for utility companies.
