WTI Crude Oil
The WTI Crude Oil markets fell again during the day on Tuesday, as we tested the $28 level again. This area was the lowest that we had reached previously, and having said that, it looks as if we are going to continue to try to break down below there. I feel that it’s only a matter of time before we do, so therefore I am not interested whatsoever in buying. I think this market should eventually find enough selling pressure every time we rally to finally go down to the $25 region. It is not until we break well above the $34 level that I would even remotely consider buying this market as it is so bearish.
Natural Gas
Natural gas markets had a volatile session on Tuesday, as we continue to hover around the $2.10 level. You know that I’m very bearish of this market but I do recognize that we get bounces from time to time. I look at those bounces as an opportunity to sell from a higher level, which is essentially what I’m looking at right now. I think that it’s only a matter of time before the rally fails, and the market continues to go lower, and eventually breaking well below the $2.00 level.
Given enough time, we should reach the lows again and perhaps even break below there. After all, we are getting close to the end of the heating season, and that of course is going to be bearish in and of itself. I have no interest whatsoever in buying, I really don’t even have a scenario in which I do yet, as I think there is more than enough selling pressure all the way to at least the $2.50 level, if not farther than that. Because of this, I simply look for opportunities to sell.
