Today King World News is pleased to share a fantastic piece which reveals absolutely shocking developments in crude oil and the CRB Index as well as what this means for the gold and silver markets. This piece also includes 4 remarkable illustrations that all KWN readers around the world must see.
February 5 (King World News) – “Crude oil volatility has picked up, with three moves of more than 7% over the past four days. That is the type of activity that we've been looking for following a crash, but in 1986 and 2008, these extreme moves persisted before a low-risk rally took hold (see charts below).
About the most dangerous activity across markets right now is trying to pick a bottom in crude oil. That has been the case for a couple of months, and continues to be so.
… YES, it is exactly the kind of activity we see when crude has formed post-crash bottoms, but NO we have not seen enough of it.
… A 7% daily move (up or down) in crude is a 3 standard deviation event. The chart above shows how many of these 7% moves crude made over a 30-day period.
As noted on the chart, the only two occurrences were in 1986 and 2008, during the post-crash bottoming process. Several of the measures we've discussed for crude suggest that the commodity is within the window of when it should start bottoming, so this week's activity is a great start. It's just likely to last into the spring before an investable bottom is in place.
King World News note: The following 7-year chart shows the extreme negative sentiment readings that are still in place in the crude oil market (see below).
King World News note: Also of interest is the following 7-year chart which shows the most pessimestic sentiment readings on the CRB Index for the past 7 years. With such extreme negative sentiment in place, it might be time for a significant rally in the CRB (see chart below).
KWN note continues: A rally in crude oil and the CRB Index would also provide significant upside momentum for the gold and silver markets.
The information above is just a small portion of the latest fantastic report. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***ALSO JUST RELEASED: All Hell Is Now Breaking Loose In Europe CLICK HERE.
© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The audio interviews with Felix Zulauf, Andrew Maguire, John Mauldin, Egon von Greyerz, Dr. Paul Craig Roberts, Gerald Celente, Lord Christopher Monckton, Michael Pento, Bill Fleckenstein, David Stockman, Dr. Philippa Malmgren, Stephen Leeb, John Embry, Rick Rule, Rick Santell and Marc Faber are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.