This post was just published on ZYX Short Change Alert.
Yesterday we took nice profits on short oil trade around position. Today it is time to take more partial profits on regular oil position.
ETF USO is short from $11.31. IT is trading at $9.88 as of this writing. Consider taking profits on 20% of the remaining position in the zone of $9.66 to $10.05. Consider continuing to hold the remaining position.
EIA report shows crude build of 1.67 billion barrels vs. consensus of a draw of -2.6 million barrels. Gasoline had a build of 0.452 million barrels vs. consensus of a draw of -0.5 million barrels.
From the Morning Capsule that paying subscribers received before the market open,
Oil
API Data showed that U. S. crude inventories fell by 800 K barrels vs. consensus of a decline of 2.6 million barrels.
EIA Data, which is considered more authoritative, will be released at 10:30 am ET.
A bigger problem for the oil is not crude inventories but gasoline inventories. Gasoline inventories are building up at a time when we are about to enter the shoulder season in which gasoline demand falls.
Our blessings in calling oil correctly continue starting with shorting oil around $108, staying bearish throughout the decline, going neutral around $29 and now we were shorting in high $40s and low $50s and taking profits around $42.01.
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