#$dto

Has Greece been a good economic indicator over the past few years? Most would say NOT!

Could Crude & Copper be sending a more important global message than what happens in Greece?

A year ago a long-term pennant pattern in play with Crude Oil. Once it started heading south a year ago, it fell hard. Crude Oil's rally took it 23% retracement level and its 200MA line of late at (1) below. See what is happening now!

CLICK HERE TO ENLARGE CHART ABOVE

Crude is breaking below this multi-week pennant pattern after failing to climb above Fibonacci resistance and its 200ma at (1).

Copper has been weak for the past few years, breaking below a support line that has been in place for over a decade.

CLICK HERE TO ENLARGE CHART ABOVE

After breaking below this support line, Copper rallied some of late, hitting the underside of the old support line, which is now resistance. This resistance came into play at the $3 level and now its backed off almost 15%.

If Crude Oil and Copper would happen to continue to head south, these leading indicators could be sending a important message about the marco status of the worlds economies.

Full Disclosure- Premium Members are short Crude Oil, own $DTO

Crude Oil - 2nd largest yearly decline in 30-years

Guess we haven't seen this large of a yearly decline in a while...

Have to say I am impressed that the S&P 500 is just 4% from all time highs, considering what Crude has experienced!

Appears a game of "Catch-Up" is due! 

Where will each of these assets be at Christmas next year? Which one will be the better one to own?  

Massive "Crowded Trade" continues to unwind as Crude breaks support. 

In the investing game, it can be painful if you are part of a crowded trade at the wrong price point. The chart below reflects that a "Crowded Trade" took place in the Crude Oil market as it was hitting resistance.

On August 1, Premium Members shorted Crude oil by picking up DTO (click chart to enlarge) in a pair trade as it was hitting resistance and the crowded trade was at extremes at (1).

Now Crude Oil looks to be breaking support at (2). A couple of weeks ago the Power of the Pattern was sharing that Crude could fall to the $70 level. 

No commodity on the planet is more important from an impact perspective. Keep a close eye going forward on this key commodity.

Crude Oil-Most important commodity on the planet heading to $70?

Anyone heard that some unrest is taking place in the mid-east of late? In the past what usually happens to the price of Crude Oil when this takes place? As we all know, frequently it pushes up the price of Crude. So why is Crude soft in light of this unrest?

Crude oil looks to be inside of a rising channel that dates back almost 30-years, with a failed breakout of this channel a few years ago. Over the past 5-years, Crude has remained above a support line of a pennant pattern. 

A break of support would be bearish, for the most influential commodity on the planet, especially when events are taking place that is usually bullish for this asset.

If 5-year support fails to hold, long-term support comes into play around the $70 zone. I believe what happens to Crude over the next 6-8 weeks could tell us a good deal about where the macro state of the economy will be around Christmas.

Joe Friday shared a month ago that the TR commodity index was nearing a breakdown. (see here) Since then, the trend remains down. Continued softness in the sector often means global softness is in the cards going forward.