Subscribe in a reader WTI Crude Oil is knocking on $97 level...will it break higher or head lower? The Federal Reserve meets next week, will the continue with QE or taper? ITZ has called for a market correction, $SPX to decline to it's 200ma around 1,500 level.
WTI crude oil to around the $90 a barrel area, having entered Proshares Ultra Short Crude ETF (SCO) with two (1/4) positions @ $37.25 & $36.50. Next entry level $36, came close today. Here's a daily SCO chart, you can see a Head & Shoulders pattern with $36 neckline. ITZ will add to position @ $36 & set a $35 stop level on the entire position. SCO Chart
API & EIA inventory reports this week showed that there is more than adequate supply of crude oil.
Early this week, monthly forecasts from the Organization of the Petroleum Exporting Countries and the EIA gave a more pessimistic picture of the oil market. The EIA said Tuesday in its short-term energy outlook it expected the growth of oil demand in China, the world's second-biggest oil consumer, to slow to 4.1% this year, a drop from the 4.4% growth projected last month. OPEC modestly lowered its forecast for global oil-demand growth this year. Read Story
10 comments:
WTI crude is trading up in futures, breaking $97 resistance @ 9 am $97.55. $SCO pre-market $35.30, let's hold off on buying on the open or adding to position here. Maintain stop @ $35 on entire position which would be about a 3.5% loss.
$SCO exits- hits $35 stop. ITZ entered a 1/4 position @ $37.25 & then another @ $36.50. avg cost basis $36.88 -$35 = -1.68for a 4.55%
loss. Appears WTI crude oil is heading for $100 if not higher. ITZ will look for a possible re-entry into $SCO at the $100 level. For now on the sidelines.
$SCO enter 1/4 position $34.80 set stop $34
$SCO adding to $SCO @ $35 (1/4 position)
SET STOP on 1/2 position (both entry level, avg cost basis $34.90) to $35.20
$SCO stopped out +$0.30 for 0.9%
$UCO long crude here 1/4 position $29.40- set stop $29
$UCO stopped out of 1/4 position @ $29/ -1.36%
Shorting crude here taking a 1/2 position in $SCO @ $35.80 with a $35 stop
Here we go... raise current stop from $35 to $36 on $SCO
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