Apologies for double negative, but it is what it is OIL - NOTHING MATTER NO MORE and supply and demand, Nigeria and Russia, Brazil, SPR ( strategic petroleum reserve ) - who cares...The day when Goldman Sacks promises $150-200 per barrel oil price - oil stopped been commodity and finally became JUST A TRADING INSTRUMENT.
If GS can move the price of oil ( cornering IS illegal, is not it?) just based on its reputation of been not dumber than a bag of hammers and shorting subprime/mortgage hysteria ( all idea attributed to JUST two Goldman traders, Michael Swenson and Josh Birnbaum who barely escaped been shown out of the door for having common sense) , so if GS can move the price of oil over 9% in a matter of one week - this is AS HYSTERICAL as it gets for oil now.
Let see if applying just simple technical observations ( I really hate to explain how I read charts ) and not paying attention to any "influential" news we can prove that oil is purely technically affected trading instrument and not something of Intrinsic Value anymore.
Below are 2 intraday charts of DIG/DUG followed by daily charts.
On intraday charts pay attention to MECHANICALLY GENERATED BUY/SELL signals ( red/green bars) and VOLUME during down and UP moves and on daily charts note two huge volume spikes and resulting moves. Make your own concussions - I am short oil - are YOU?.
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