oil prices roll over

Having screwed up previously on the very bullish oil price run it looks as if prices are finally rolling over. A support level at $59.30 was broken this morning. 100 DMA has also lost its upward trend and is now rolling over. We might get some volatile trading ahead as this will blow a lot of stops on the downside (price is currently under $59 dollars).

Notice that a lot of oil shares are loosing momentum. The uranium stocks have been looking sick for weeks. Avoiding both sectors. DOW will fly in this environment as will gold (paradoxically) due to inflationary pressures and currency issues already in the system.

One factor not noted by energy bulls is the extremely warm weather in the Southern U.S. Travelling around in the South it is obvious that the "turn" in leaf color has not arrived. Typically all the leaves are down by now but all of our trees are still blooming a rich green indicative of extremely warm temperatures that are taking the pressure of natural gas and heating oil demand. As long as this warm weather continues shorts will hit the energy complex.