Starting a new trade around position short selling  USO  scaling in right here at $11.28, up to $11.47, with a stop on one-half of the position in the zone of $11.68 to $11.88 and mental stop on the other half in the zone of $11.55 to $11.63.  Adjust position size based on your own risk preference.  For tracking purposes, the position size is 40% of the full core position size.

This is a very, very short-term position.

Please see Trade Management Guidelines to learn about trade around positions.

Oil is running up on headline bullish inventory number.  There are two problems with the rationale of the momo crowd that is aggressively buying oil here.

  • First the inventory draw is due to Canadian fire.  Canadian fire is easing and several Canadian companies are resuming production.  Please see Morning Capsules.
  • When analyzed as a whole, including gasoline and distillates, the inventory numbers are not that bullish.

Note:  Those who cannot go short may consider using inverse ETF SCO.

This is suitable only for super aggressive experienced investors.