Courtesy of Doug Short.
Three years ago this month, August of 2008, Crude oil broke a key support line, which led to over a $100 a barrel decline in the following four months. Was the massive decline in Crude Oil great news for investors and the S&P 500?
During the same time frame that Crude Oil fell over $100 a barrel, the S&P 500 fell an additional 40% in value.
The “Power of the Pattern” was suggesting six weeks ago (see my post here) that Crude had a two-thirds chance of declining to the $60 level and a decline of this size would be sending a message to take risk off the table!
Quality messages per how to construct a portfolio or how much risk a person should take can come from a variety of sources. Crude continues to be a great one.
Crude Oil’s break of support back in 2008 was sending a message that we world was slowing down and taking some risk off the table was a good idea.
Is the message any different this time around?
(c) Kimble Charting Solutions
blog.kimblechartingsolutions.com
