What Did You Expect

Daily Continuation

After a ten percent decline what did you expect?— I get a kick out of traders, with the bears astonished that prices did not collapse another ten yesterday. Sorry, declines like that need a time to confirm (or consolidate) and yesterday represented the market taking a moment to breath and figure out the next move. Catalysts that send a commodity market down 10% in a day are not usually followed by the event causing another 10% decline– normally the market needs to digest the first event.

The action has provided a near term support zone (yesterday lows) and a short term resistance area (gap from Monday)– would play that range until we find out if there is another catalyst to be defined.

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.