All that glitters is crude... September 1, 2015 Archives | Unsubscribe Up 25% in 3 Days! Here's How to Play Oil's Dramatic Bounce All that glitters is crude Oil bears run for cover Plus: Can the Dow drop 30%? Greg Guenthner coming to you from Baltimore, MD... "How low can oil go?" That's the question all the worrywarts in the mainstream media were gurgling as oil broke below $40 last week. Their answer? Plenty lower. Maybe even down to $10. So what happened? Oil's shot up like a missile. (Sorry, but you just have to laugh at these guys.) So today we're going to continue to play this crazy bounce for some sweet short-term gains that'll put some juice into your trading account… If you thought there was something fishy about all these predictions of oil sinking to ridiculously low levels, then go ahead and pat yourself on the back. Because we won't be seeing $10 crude anytime soon—thanks to oil posting its biggest rally in three years to close out last week. Black gold's sharp U-turn horrified the short sellers who played Press Your Luck with their positions. Now crude's third straight leap higher is biting them on the fanny. Just as we discussed Friday, all eyes were on the stock market's schizophrenia last week. But while everyone else chewed their fingers to the bone as stocks swung violently from one mood to the other, you had a clear shot at some ridiculous gains in just a few hours betting on a quick oil rebound. That's when the insanity started… After the smoke cleared Monday morning, the latest round of this oversold bounce pushed crude's 3-day gain over 25%, after dipping below $44 early on. It ripped higher by midday, gaining 6% by early afternoon. So oil's unexpected rebound is stealing all the headlines heading into a brand new trading month. The stock market's performance over the same timeframe? Let's just say it fell a tad short…  So we got our wicked oversold bounce. Now the news cycle is beginning to help fuel crude's run-up. "The market turned around on two pieces of news," Phil Flynn, senior market analyst for Price Futures Group Inc. tells Bloomberg "The EIA cut its U.S. output estimates and OPEC says its ready to talk to others about cutting output." There ya go… So we have a completely unexpected pop and news that OPEC might be ready to play ball by cutting output. That's bullish for crude, my friend. Sorry, shorties... As I told you last week, I don't think crude's shooting back toward $100 this month – or even this time next year. Heck, it might need to drop a bit from here just to cool off after this monster run higher. But make no mistake: the energy sector is looking like a strong player while the rest of the market's trapped in Purgatory. This oil rebound will be volatile (crude is down more than 3% this morning). Traders will continue to jockey for position this week as the magnitude of the recent move sinks in. Just one more reason to expect the opposite of what the mainstream media says… U.S. Investors Prevented from Selling Stock? Investors are saying they can't access their brokerage accounts. All they have is a toll-free number to call. Jim Rickards believes this could happen to you -- and soon. ***Click here for the steps you need to take right now.*** Rude Numbers When to Buy... When to Sell 870 points dropped from the Nikkei today. The Japanese Index finished the day down another 4.6%... 259 points are missing from the DAX today. European stocks ain't looking so hot either. The German DAX is down a cool 2.5% on the day... $47.68 buys a barrel of crude today. Oil is taking a break after its huge rebound. It's down more than 3% in early trading... $1,140 is where you'll find gold futures. The yellow metal is up $7 so far today... 1,925 marks the spot for S&P futures before the morning bell. Stocks are looking to open lower by as much as 2% this morning... Rude Trends When to Buy... When to Sell "This crash is 2 years over the normal 9-13 year business cycle," a reader declares. "So...over the next 2 years the dow probably will go down 30%-plus. Mind you, it's a 13 year cycle crash and not a 60-70 year cycle crash." I don't know about all this cycle stuff… Last I checked, the market crashed in 2008. That's 7 years ago—so I'm not exactly sure how that fits into your 9 to 13 year cycle. And what about 2011? The market dropped 19.9% almost exactly four years ago. Doesn't that count for something? Why are we ignoring these drawdowns? As for the Dow dropping 30% over the next two years, I'll be the first to tell you that I just don't know if that will be the case. There's no use in getting caught up in these wild predictions and targets that span 24 months or more. Let's stick to trading what's directly in front of our faces—and leave the forecasting to others.  [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] Ignore At Your Own Peril Today's Must Read Links Six Investment Opportunities to Survive Any Market Crash U.S. seniors now collecting $4,700 per month by piggybacking "Canadian Social Security" The Vagabond's (FREE) Guide to Living Like a King Add rude@agorafinancial.com to your address book: Whitelist us Additional Articles & Commentary: Daily Reckoning Website Join the conversation! Follow us on social media: The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening. © 2015 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.