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Bottom extension in Brent

The recent accelerating weakness in energy markets has now produced a bottom extension in Brent crude futures:

Brent bottom extension

This is the trigger to exit all shorts in crude (we had recommended shorting Nymex WTI futures) and reversing into long positions.  The international situation in the Middle East and Ukraine remains awful and so the prospects for more supply disruption make Brent a better buy than WTI, even though it is more expensive (that is why it is more expensive of course) so:

Cover WTI and go long Brent at market.

This short has been ‘the perfect trade’ - entering on a top extension when all were panicking about Iraq and now exiting at a time of similar panicky liquidation.