WTI Oil $ WCS Oil $ Crescent Point Energy (CPG) $ Torc Oil and Gas (TOG) $

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1 WTI Oil $ WCS Oil $ Crescent Point Energy (CPG) $ Torc Oil and Gas (TOG) $ $60's is targets for the American analysts, now seems to be in line and low $50's eventually for Canada...if and when pipelines get built. We dwell on this story because of two people - fundamental guy Josef Schachter, who could be comfortably retired and enjoying life (he qualifies for senior parking) but is convinced we are on the verge of the third historic oil bull market of his lifetime and wants to be here to participate. Torc Oil & Gas We seem to be dwelling on the price of oil...mainly because it's the basis for the Alberta economy and a prominent player in the Canadian economy as well (and our ability to send endless welfare to Quebec). We have noted the last few weeks how many American brokerage houses have dropped expectations for oil prices for 2019 due to expected weaker global economies and seemingly e v e r h i g h e r A m e r i c a n production. An average in the dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 1

2 Ross Clark is the technical guy...has no care for the fundamentals, and says everything is in the charts. And somehow those charts are telling him that an incredible bull market in oil is about to unfold. Take a look at his latest comments that are just out and of course, being a technical guy, you are trying to time the ups and downs. But maybe you can enjoy all those squiggly lines and try to understand what these good folks are seeing...and hopefully they might be right. Crude Oil Recovery from Capitulation on Xmas Eve to First Overbought Reading Today: The Crude Oil market generated a Capitulation reading with a bullish divergence in the Demand Index two weeks ago. The fifteen percent rally to $49.50 is now entering overbought territory. Historical bottoms in oil generally take the form of a climactic low ( ) followed by a rally through the 20-day ema (shy of the 50-day ema) with one to three overbought CCI(13) readings ( ) and then a retest of support around the 20-day Bollinger Band. The 10-year cycle low in oil will be confirmed once prices establish a month with a higher high. As of January, this will require a move above $ While information and opinions expressed in this publication are believed to have been gathered from reliable sources, we accept no liability for actions that you might take in response to the material presented. Because the use of the information presented is relevant to the facts of your personal situation, you should seek the advice and services of a qualified professional who will take your personal situation into consideration in guiding your actions. dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 2

3 TransCanada Pipe (TCP) $ Y O U K N E W T H I S W A S C O M I N G F O L K S... A s TransCanada, the big pipe-liner decides to change its name to TC Energy. That gets that "Canada" out of the name, which probably makes some American investors now more comfortable. The scary part is that while this might "reflect its area of operations" the worry becomes when do the headquarter jobs leave Calgary and Alberta for south of the border, where folks are m o r e o i l a n d g a s friendly. They like the well-paying jobs and they like the taxes that oil and gas generate f o r g o v e r n m e n t s. Maybe this might be a bit of a boost for the s t o c k a s i t d o e s become, as we've said, more comfortable for investors south of the border. Meanwhile, a handful of goobers protest oil and gas across Canada and get national attention, despite there's only a handful of them that just left their parents basements to go protest...we wonder how they got to the protests... If you know anyone who would like to receive our newsletter, please Debbie at debbie.lewis@plant4seeds.com dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 3

4 Is the Economy and the Markets Getting a little Scary? The news coming out over the last while has been less than exciting on many fronts. The stock markets are down around the world - some of them rather significantly and many hitting lows they haven't seen in quite some time. Italy is on the verge of being officially in recession (and given their level of debt, Italian bonds I don't think are something anyone wants to own). Meanwhile, debt levels around the world for governments of all levels, corporations, and individuals continue to hit new highs. Just out in the United States is news that their level of manufacturing has dropped and that had been one area that had been doing quite well. Many of the world's current leaders (particularly one Donald Trump) inspire not a lot of confidence and if something did go wrong, is he the guy you would want to be in charge of the economy? We find we certainly get some very interesting reading and comments back from our readers...so, we ask this simple question: Which of the following four outlooks is closest to your own current opinion on the situation? 1. I think we are just going through a bump over the next few months and then things will resume in good ways? 2. Every 8 or 10 years we have a recession and that's what I think we are going into? Recessions last a year to two years and can cause grief, particularly in the markets. 3. We remember the market correction of 2008 and this is the scary part because it does feel that if things go wrong this time, things could go really wrong. 4. There's nothing wrong at all folks. Just a bump. Happy days will be here and quite soon. If you have a few minutes, send us your 'deeper thoughts' folks...we will share them in the coming days. dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 4

5 Deb s Ditty: I don t work well under pressure or under any other circumstance dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 5