RE:RE:RE:Is this 4th wave fear? As a prelude to the lowest WTI price ever, one must return to the late 80's and early 90's to understand the back drop leading up to that event. The major trading companies and some of the major petroleum companies set up a predecessor to most of the modern futures trading with a hedging mechanism involving the buying and selling of fictional cargoes of crude and products. These were called daisy chains, and the names given to them were rather colourful Russian Roulette, Boston Bingo etc.
My major point is that due to the large sums involved for each fictional cargo, the players in the game were nearly always the same. This set the pattern for incestuous trading relationships at the expense of others foolish enough to join these games of rigged musical chairs
With the passage of times the futures markets expanded and the major financial brokers as well as banks and wealthy individual investors via hedge funds were able to join in
By 1991 with the onset of the first Gulf war , The future traders realised that by acting in concert they could drive WTI up to $40 per barrel. Then once this was done they could equally drop the price back down even in the middle of the night. (Which they did)
Fast forward to 2020 and the same thing happened again but in reverse this time. A negative price for Crude never made sense to anyone (except to traders )
It has been a very long time since I knew the players in the games. But I am quite convinced the games remain the same. I also know that traders cannot hold an illogical position for too long as more realistic money will come in to break their temporary holds .
So your best and probably only workable strategy as always is to play the fundamentals and wait for the market to come to you.
Playing the market is a fools game. The powers that be are way ahead of you !!