Crude DP short ?

[buylosellhi]

How does this one look for a short in crude ? its not the most ideal setup but could be interesting. any thoughts ?

[d-day]

I have found more success when I trade DP set ups that signal then end of corrections rather than the end of on-going Bull and Bear Markets.

[Matt Bowen]

Dear Buylosellhi,

David has a good point... especially when open interest and volume are going up, that's like standing in front of a moving train...coming right at you!

I posted this on April 9th when Crude Oil was moving into a 5th wave:

http://www.mtptrader.com/showpost.php?p=16418&postcount=267

Also, note the rollover in crude from May to June has already taken place.

Trading is like a giant jig-saw puzzle, you have to make sure all the pieces are in place before pulling the trigger. Many times I see traders quick to take action and what they are really doing is trying to jam the pieces together because they in a hurry to bank profits. It’s always best to take your time and put the puzzle together using the right pieces.

All the best,

[Matt Bowen]

I was just reading the Money and Markets report on Crude Oil and you might enjoy it as well:

http://www.moneyandmarkets.com/Issues.aspx?Gas-prices-explode-and-oil-rockets-higher-1697

I don't trade off of this Info, but it sure beats reading the newspapers where most of the ballon-head writers are clueless and handing out bad infromation.

All the best,

[billm]

For those interested:

The DOE report is released every Wednesday morning, see link below. Bearing in mind this is a US government report, the trading public does indeed react to it.

This Week in Petroleum (TWIP) has been updated to the EIA website:
http://tonto.eia.doe.gov/oog/info/twip/twip.asp

You might also be interested in the following product from EIA.
Petroleum Navigator:
http://tonto.eia.doe.gov/dnav/pet/pet_sum_top.asp

The Natural Gas reoport comes out on Thursdays and is available on the
EIAWebsite:
http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp

Good luck!

BillM

[Larry22]

I wouldn't be surprised to see crude oil made a correction from yesterday's high as it has reached the second DP from wave 4 to 3 for a potentail wave 5 top.

So chances are good that wave 3 of 3 as we seem to have 5waves in wave 3 are completed but again I wouldn't sell it my self as I haven't look at the weekly chart and it is in a bull phase.

Anyway as usual time will tell.

Laurent

[Larry22]

I wouldn't be surprised to see crude oil made a correction from yesterday's high as it has reached the second DP from wave 4 to 3 for a potentail wave 5 top.

So chances are good that wave 3 of 3 as we seem to have 5waves in wave 3 are completed but again I wouldn't sell it my self as I haven't look at the weekly chart and it is in a bull phase.

Anyway as usual time will tell.

Laurent

Good call there looks like I nailed the top of wave 3 as it possibly made a B wave only a few ticks (3) and dropped like a rock I wonder why. ;)

[Steve Griffiths]

Hi Everybody,

Trying to top pick the end of a strong rally with a potential Wave 5 high is always a very dangerous game, as wave 5's have a nasty habit of "overrunning" targets....

However, it is interesting how Crude Oil is now at the Typical Wave 5 WPT from the Jan lows, but I must admit this is on a very shaky manual Elliott Wave count....

So, personally, I would not be happy trying to top pick Crude, but I will be watching with interest to see if the May 22 high holds.....

Steve

PS, "if" a further rally unfolds and breaks this resistance area, then much higher prices should unfold..