It wasn't that long ago, June 19, 2008, we had a conversation with Stephen Briese, author of the Committments of Traders Bible about the imminent bursting of the oil and commodities bubble (200 Days of Oil Supply Held Long by Speculators). That was just weeks before the price of oil (and other commodities) peaked at 147. In that conversation, Briese made the firm statement that oil could drop as low as $30, which is why we are bringing it back to your attention. It was very very hard to believe that it could come true, but here we are. Here is that conversation again:
To Listen, Press Play [MP3] Stephen Briese, CommitmentofTraders.org, June 19, 2008,
9 min. 18 sec.
Oil is trading around $34.71 down $1.51 from yesterday's close, as of the writing of this article.
Here we display Bespoke Investment Groups handy commodities at a glance roundup. They do an excellent job of creating graphs like these that make it relatively easy to see where prices are in relation to their 50-day moving averages. The green shading represents two standard deviations above and below the commodity's 50-day moving average, and moves above this shading are considered overbought or oversold.
Gold, Silver have recently broken out from their oversold positions very nicely into overbought territory. In the food segment, Corn and Wheat have also had a break out off their oversold bottoms and nearing overbought territory. The rest however have continued to see weakness.
