• August 6, 2020

ELAM: Markets begin next leg down - Odessa American: Dennis Elam

ELAM: Markets begin next leg down

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Posted: Wednesday, June 24, 2020 4:00 pm

The long bull market topped Feb. 12 and the first leg down to DJIA 18,000 ended March 23.

Wave Two up concluded June 8. Wave Three Down is now well under way for the entire stock market and energy markets in particular.

Specifically Large Wave Three began June 9 declining to June 15 then up to June 20.

The next move down is underway now with the DJIA declining 2.49%, 650 points as this is written mid-day.

Crude oil is down 6% after a throw over lasting two days above $40. As previously reported, energy shares remain much weaker than the oil price.

Energy ETF XLE is down 4.75% just today.

Refiners are hard hit with Valero down 7%. Bottom line, despite all the reassurances most of which this column has ignored such as FED machinations, infrastructure spending, re-open the economy, virus subsiding, the market has a mind of its own.

A bull market does not begin with riots, looting, and mayhem. These are exclusionary negative social events. The entire episode of 1969-1974 is being repeated.


  • Crude Oil: 42.19   (+0.49).
  • Nymex MTD AVG:  41.0880.
  • Natural Gas: 2.191   (-0.002).
  • Gasoline: 1.2228   (+0.0085).
  • Spreads: September/October   (-0.24)   October/November   (-0.33).
  • Plains WTI Posting: 38.50   (+0.25).
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