July 15, 2022 - (Gold Market Wire) - In yesterday's missive we noted that 1) Crude Oil looked ripe for a fall; 2) That in volatile markets like this you need to trade small and take profits along the way, and; 3) That the Crude Oil bull was not dead, but resting.

We got all three of these packed into one solid day of action.

If you got short (like us), and didn't take profit on the day's blow out to the downside, you need to find a new career. No one stares a sell-off like that in the face, while war rages in Europe, and energy-based conflict is ubiquitous - and doesn't take profit. If you didn't, you managed to snatch defeat from the jaws of victory. Yesterday's sell-off was a technical signal blaring like a trumpet. It was not the start of some new low-priced energy environment, even if the Biden Administration manages to crank more downside out of the market. As we said, the bull market isn't over; not by a long shot.

In fact yesterday's action has all the hallmarks of a big flushing of weak length. The recovery was just as dramatic as the sell-off and the re-gain of the trend line was impressive. Next up: The Challenge of the Power Downtrend. Can we clear it? Well it is Friday, so there's always a decent shot. We'd like to see the power move abate before we think about length, so - flat for now.