This post was just published on ZYX Short Change Alert.
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. USO is trading at $11.94 as of this writing. Stop on this tranche is in the zone of $12.81 to $13.17.
There is no change in the prior target zone.
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