I was short for the majority of the decline and now am going to poke USO for a trade. Hey, if it doesn’t work out it means I am paying less for heating oil this winter. If it does, it will help defray some of the cost. The decline brought crude oil to a thick support zone.  Check that, I am going to let it breathe for a while. The little pattern is breaking down today.
I will let the real brave bears take whatever downside is left on crude. With today’s plunge (per 2nd chart below) I think enough is enough. Booking profit.
USO shows today’s tankage…
The crude oil ETF USO is definitively breaking below support today and I am still short against it.
Profits here can defray some of the heating costs that will still be very high this winter, compliments of Alan Greenspan and Ben Bernanke’s ongoing inflation and its embedded cost effects. Thanks again guys!
Per an NFTRH subscriber’s request, here is a look at crude oil by weekly chart. I did not get to it in this week’s letter as the letter got 24 pages worth of in depth into other areas.
It looks like crude should be good for 97 at least.
NFTRH has been following this weekly chart of the CCI consistently for a couple months now. Still no resolution on a would-be ‘inflation trade’ featuring commodities, which may be on if CCI breaks and holds above the downtrend line and very OFF if 500 fails.
Well, I do not have a conclusive answer yet. But the industrial metals are going to have a say in the matter. This morning NFTRH did an extensive update looking at indicators of a would-be ‘inflation trade’. The GYX was one of them, and not due to this daily chart with its seemingly inconsequential resistance @ 350. Go pull a weekly chart and you’ll see something very consequential about this level. Daily chart follows…