There are a lot of moving pieces on the geopolitical chess board right now and one of the most important indicators is the price of crude. Last week crude oil futures reached $95 before backing off at the end of the week. Friday's low was $81.50 and it while crude has gapped higher this morning, it is still trading well off last week's highs. If price starts spiking higher, expect that third wave down in stocks to explode to the downside. So far the financial market's reaction has been relatively muted. Calm before the storm? I'm adding crude oil to my watchlist for any sign that is about to change. The Fib extension tool (right axis) is suggesting much higher prices. That would not bode well for just about anything...except crude oil futures. Bottom Line War is on the table and if things go south they will do so in a hurry. Oil could be a lead indicator that geopolitical deterioration is gaining a foothold with oil and gold stocks as potential longs. Crude Oil Futures
