The WTI Crude Oil markets rose during the session on Friday, parking at the $106.23 level by the time the markets closed. This market continues the so bullishness, but I have to admit that I'm very concerned about going long at this point. After all, this market has been so parabolic I cannot help but think there is some type of massive pullback coming. There is a certain demand out there for crude oil, but let's be honest here: most of this nonsense involves Egypt, which has almost nothing to do with this particular market. While it's true, sometimes when the Brent markets get emptied, other countries will use other forms of lighter oil, but in the reality of the situation, nobody's closing the Suez Canal anyway. Sooner or later, there's going to be a lot of hurt feelings.
Just biding my time
Quite frankly, this would have been an excellent move to catch on the upside. I didn't catch it, and that's okay because these moves happen all the time in various markets. So the only thing I can do is simply wait for that pullback or that meltdown that could be coming. Quite frankly, I can't be bothered buying this market up here, it would be simply "chasing the trade." I personally cannot think of a more excellent way to destroy your account than to pay the highest prices possible while chasing a particular market like this.
That being said, I don't see a resistive candle so I'm on the sidelines. I know that offset a lot of people out there because there is no insight to this analysis to suggest where the next $.20 is coming from, but quite frankly the larger move is what's going to matter in the end. Of the summer, and quite frankly it's often one of the worst time to trade this contract to begin with. The volume is simply going to be strong enough to produce steady flows anyway, and I suspect that the next couple of weeks will be very difficult in this marketplace. Trust me though, when we get that resistive candle that looks like it can start selling the market off, I'll be all over it.