• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 10 hours The Political Debacle: Brexit delayed
  • 14 hours Trump sells out his base to please Wallstreet and Oil industry
  • 12 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 13 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 21 hours Tidal Power Closer to Commercialisation
  • 11 hours New Rebate For EVs in Canada
  • 22 hours Will Trump Cave Again
  • 23 hours Read: OPEC THREATENED TO KILL US SHALE
  • 22 hours Solar to Become World's Largest Power Source by 2050
  • 5 hours Trump Tariffs On China Working
  • 12 hours Biomass, Ethanol No Longer Green
  • 3 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day Oil stocks are heating up again! What's on your Watchlist?
Alt Text

Stock Market Chaos Sparks Oil Selloff

Global markets took a beating…

Alt Text

Yieldcos Are Back And Better Than Ever

Yieldcos have had a rocky…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

How Far Will the Market Fall?

Now that we are solidly in “RISK OFF” mode, traders, managers, and investors are asking how much downside we are looking at. It is safe to say that those who were piling on longs with reckless abandon are now potentially staring into the depths of a great chasm. I have included charts below showing the important Fibonacci support levels. Let’s take a look at how far down is down.

*1,300 – The first big figure. Already broken intraday, but it held the first time.

*1,286 – The 50 day moving average, the no brainer, most bullish target. The “buy the dip” crowd takes a first bite here.

*1,280 – 38.2% Fibonacci support level.

*1,260 – 50% Fibonacci support level.

*1,230 – Broken resistance from the November high. Europe blows up again. Take your pick: Spain, Ireland, Britain, Portugal…

*1,167 – The 200 day moving average. It must hold for the bull market to stay intact. This is where $5/gallon takes us. Double dip recession talk reemerges. The “buy the dip” crowd takes a second bite.

*1,117 – The November low. The “buy the dip” crowd throws up on its shoes and pukes out the last two “buys”. We spike down, triggering another “flash crash.”

*1,000 – The next really big figure. Ben Bernanke, with the greatest reluctance, announces QE3. Bond prices soar, taking ten year yields to 2%. Homes prices collapse again, triggering a secondary banking crisis.

*666 – The Saudi regime falls, and 12 million barrels a day disappears from the market for the indefinite future. Unemployment hits 15%. Obama is toast. Your broker turns bearish and tells you to sell everything. Welcome to the Great Depression II. It starts raining frogs.

S&P 500 (1)

S&P 500 (2)

By. Mad Hedge Fund Trader




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News