Please start out by reading about API data in today’s Morning Capsule.
EIA inventory data was just released and is highly bearish for oil. The risk in the trade is twofold.
- The momo crowd continues to buy oil aggressively in the face of bearish data.
- (SCO) is a double leveraged inverse ETF and does not always track oil well. The trade works better by short selling oil ETF (USO) and a signal has been given to short USO in ZYX Short. However, we understand that many investors are not able to short sell.