Daily Archives: February 13, 2018

GSCI – Goldman Sachs Commodity Index (GD)

With oil crashing, and gold showing bearish signs as well, I thought I would look at the GSCI. This GSCI fits better with the oil charts and  has not been in a bearish decline. This could work as a potential “D” wave with the first “A” wave, already completed.  So far the decline has not displayed and type of a zigzag. I would rather see a flat correction develop in a “B” wave of a zigzag, as a zigzag correcting in  a zigzag is very rare indeed.

Not until I see a great looking correction starting to finish, can I turn bullish with this chart. How much Natural Gas will play a role in any counter rally,  is not clear at this time.

Natural Gas Is There A Summer Rally In The Charts?

I labeled a wave 3-4-5 in Intermediate degree, but this could be one degree too high at this time.  Our present rally seems to be crashing or correcting. I see it as a potential correction of the flat variety. We are about as close to a running flat as we can be, but it sure would look better with a bit more downside.  A Flat inside a zigzag always works for me which would end up giving us a summer rally as air conditioners crank up for the summer months.

Commercial traders are net long Natural Gas, not by very much, but it helps to make a bullish case for a summer rally. This is a weekly chart and switching to any smaller scale distorts the charts so much it’s impossible to show a decent wave count. One thing is certain and that is that Natural Gas is another one of those charts that show some pretty wild diagonal wave structures. It would not surprise me if this zigzag was part of a triangle “D” wave, so if this is true, then we should see some very bullish NG news headlines in our future.