Beware Looking for Patterns Where There Are None -- $Brent

The oil market is in chaos. I wouldn't try to read too much into a chart right now. That said, here's a rare "pouncing dragon" chart forming in $BRENT.


(Updated chart)

You can see the dragon coiling up, ready to pounce, its tongue lolling out and indicating the next leg down.

And now I must admit I am only fooling. There is no such thing as a “pouncing dragon” pattern, in oil or anything else. This is just a reminder to not read too much into an extremely tricky market. 

In truth, there is a lot going on in the crude markets.

• OPEC production is rising
• Iran’s potential surge, with its "superweapon" of 30 to 40 million barrels of oil floating in storage in tankers, read to go to market
• U.S. production plateauing and maybe rising higher
• Russia’s eagerness for exports, helped by a weak ruble.

It all sounds bearish. But don't be surprised if we get a rip to the upside. The best thing to do in oil is either A) sit tight in positions that pay you to own them or B) play CONTRARY to short-term moves. Like short the next rally, maybe.

Or do what you want. I'm not the boss of you. Good luck and good trades.