Monday, May 9, 2011

Unpredictable

In describing silver and oil stops, I said that they were unpredictable. The organizations which are raising margin want to catch the hedgies and others so it's less likely that we'll get a leak of this information, judging by how many big oil funds were nailed recently, they didn't see it coming.

And just tonight, oil margins were just hiked by 25%!

Apparently the crossover through the first line of resistance didn't sit well with the powers that be.

Here's the first line of resistance with a breakout and some momentum into the close out of a mall consolidation.

The margin hike which was after hours was obviously meant to inflict the most damage possible in an illiquid market. However, as you can see by the light blue hash marks next to price, the reaction has thus far been pretty mild.

Again, I believe this is Bernanke trying to wiggle free of the Chinese finger trap.

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