Oil continues to be aggressively bought by the momo crowd. However, Smart Money continues to lightly sell it.
EIA Oil Inventories came at -4.2 million vs. consensus of -2.65 million.
It is important to look at gasoline inventories, especially as we near the peak driving season. Gasoline inventories came at +2 million vs. consensus of -1.5 million.
It is still not advisable for most investors to use futures due to high volatility.
Technically oil is very overbought and prone to a correction.
What To Do Now
Consider adding 10% of the full core position size to the regular short position in USO in the zone of $11.80 to $12.23.