I am fading this rally in risk that has been going on for the last 9 weeks and I am short S&P Futures and NYMEX Crude Oil Futures.
The futures are green early on, but I think markets yesterday began a reversal that will lead us to a correction in the S&P. Oil is rallying in Globex and is trading over 59.40 dollars a barrel.
After a fantastic month of April, where my personal account appreciated over 40% I am having a tough month in May. My two positions are cutting about 8% of my account, but I am confident that this rally in risk, this unintelligent bullishness is misplaced and the bulls are going to be scared off their positions. We can`t always win, can we?
The price of NYMEX crude oil reached 59.49 dollars a barrel on Tuesday, the highest level for six months as the US currency slid against leading currencies. I see a really great opportunity shorting oil on strength.
Track my real time trading on the Oil Traders Blog where I will provide my real time trading decisions and my market thoughts while debating trading views with the website regular visitors.
Have a good trading day.
Disclosure: Short S&P Futures and Short Nymex Crude Oil Futures