A Sudden Collapse in Crude Oil

By: Joseph Russo | Sat, May 5, 2012
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Sinking Crude Oil

How did our Chart-Cast Pilot subscribers fare amid Friday's collapse in Crude? To answer this we must first go back to our short-term position in the days just prior to Friday's wicked plunge. Firstly, we had been long Oil since the end of April from a price of 103.54. As of Wednesday May 2, we had open profits accruing to the tune of around $1800 dollars per contract on long positions.

Upon Wednesday's 106.43 pivot high failing to reach our 107 price-target, we illustrated boundary to a 1 ½ -pt sell trigger, which similar to the 107 target, was a technical setup that we provide for ancillary benefit outside the purview of our automated trading strategy.

Secondly, on Thursday May 3, our subscribers received a bearish email alert that confirmed, and we booked $1240 dollars in profit on long positions and reversed short at 104.78 on cue from our proprietary trading strategies algorithms.

As an aside, the ancillary sell trigger citing 1 ½ points of downside captured its target easily amidst trade beneath its 103.65 downside projection.

Note that from $1830 the day prior, that our daily equity has now risen to $3,552 dollars per contract. Furthermore, our month-to-date equity is also to the plus column with a reading north of $2,312 dollars per contract traded.

Last, we will close out with Friday's chart, which illustrates a quintessential all-at-once waterfall decline from which; our strategy was in perfect position to take full advantage.

All told by Friday's close, our short positions taken just one day prior, carry open profits of $6,100 dollars per contract traded.

So how are our Chart-Cast Pilot subscribers faring in the rest of the broad markets? See for yourself:

We suspect the spreadsheet above speaks for itself. How are you faring with your efforts and strategy's?

In closing, we leave you with a parting visual of enduring wisdom, which are our motto and our creed.

How do you ride a bear?
Yes, it is that simple!

Until Next Time,



Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the dot.com bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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