Our proprietary energy cycle is now at levels of previous tops, with a
divergence in place.
A divergence occurs when the BP is at lower high while energy stocks are
at a higher high.
Our long-term model remains at a major sell signal since 2014, but can soon
change if prices remain firm.
From the Elliott wave perspective, there is a clear five wave up and waves
in fives are impulsive, suggesting that the major correction since 2014 is
now complete. A corrective pullback/consolidation should not break below top
of wave1.
Summary We cannot predict but we can prepare.
If prices remain above the top of wave1 at the next cycle bottom, investors
can consider accumulating for the long term.
Jack Chan is the editor of Simply Profits at
www.simplyprofits.org, established in 2006. Chan bought his first mining
stock, Hoko Exploration, in 1979, and has been active in the markets for the
past 37 years. Technical analysis has helped him filter out the noise and
focus on the when, and leave the why to the fundamental analysts. His
proprietary trading models have enabled him to identify the NASDAQ top in
2000, the new gold bull market in 2001, the stock market top in 2007, and the
U.S. dollar bottom in 2011.
Disclosure: 1) Statement and opinions expressed are the opinions of
Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly
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All charts courtesy of Jack Chan.
