The miners will soon enter a 3rd wave up and it will trigger a rally in the drillers. [WTI]

Remember this post where I informed about the volume spike in miners signaling that the 3rd of final wave was likely near done and soon the miners would bottom?  At the time JNUG had fallen to $2.19.  It's bottom, pre reverse split was $1.83.  That was a 10:1 reverse so in today's terms it would be $18.30. 

Well, for the same reasons we are nearing a bottom for drillers and the debt leveraged ones have gotten creamed while the blue chip share are near an all time high.  When the blues begin to sell off, and they will, lots of money will go searching for value, or at least anything that has gotten beaten down big time.  When all that money comes looking for a home in the oil patch we are going to see some rapid movements happen. 

Below is the chart of WTI, a driller.  Its earnings have collapsed and it is using debt to pay out a 7+% divvy even though it only has 17mn cash holding down over a billion in debt.  Talk about leverage! None of that matters though.  Look at the volume spike on 3 of 5, same as the miners.  The drillers are about to catch a big bid folks, just like the miners are enjoying right now.