Taking some money off the table on WTI Crude Oil. The spread between Brent & West Texas has come in to around $13. Also WTI was in backwardation has now gone into contango.
From the May 2011 high around $115 to the October lows $75 give a Fibonacci Retracement 61.8% of $99.60.
Those using Proshares Ultra Crude Oil (UCO) may consider taking some money off the table around $42 a share and keep a tight trailing stop. Not to say WTI couldn't rise further....but it is getting toppy and at some point will affect consumer spending. Itz is holding back on taking a short position via SCO, but is set to pull the trigger on this trade.
Why oil is a tough market to sell into right now, with Stephen Schork, editor of the Schork Report.
click on chart to expand image