The Horse Has Already Bolted!!

Posted on May 30, 2008
Filed Under Investing |

The loud banging of stable doors can be heard throughout the financial markets as leading regulators on both sides of the Atlantic begin to investigate “possible market manipulation” of the oil market. These are the same regulators who were asleep at the wheel last year when the credit markets went into freefall (apologies for mixing my metaphors!!).

Market manipulation aside a quick look at the oil charts does indicate an imminent reversal (the same is true for both gold and silver). Oil weekly shows a two bar reversal with the monthly giving the strongest signal yet that the price is about to fall - a gapped up evening star. Gold and silver both show bearish engulfing candles on the week so expect prices to fall here too. This does not necessarily signal an immediate rush back into equity markets which are still very volatile (great for day traders!). What it does reveal is financial markets in transition.

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