(WCTW) Beginning Of The End
“There are decades where nothing happens, and there are weeks where decades happen.” ~ Vladimir Ilyich Lenin
As the global crowded trades unwind, all correlations go to 1. But during times of turmoil, specialists can find pockets of opportunity that the generalists are unaware of. In the energy space, we are seeing those pockets of value now. There's a big disconnect between fundamentals and price, and we think over the coming weeks, this disconnect will correct itself.
For the first time in a very long time, both our oil and natural gas market signals have turned bullish.
Oil
Natural Gas
Because of these indicators flashing bullish, we have decided to go long crude and natural gas, as we signaled to subscribers last week. We have expressed this trade in the form of long UCO and BOIL. The trades are intended to take advantage of the temporary disconnect we see in the market, so please do not expect us to hold these positions for long.
From a larger picture perspective, I think what we are seeing in the market today is the beginning of the end. While history tells us that major sell-off events like the one we are seeing today never fall in a straight line down to the abyss, it does signal that a turn is coming, and we should be prepared for what's next.