Crude Oil fell today shrugging the good news that came out on the Inventories Data. Art Cashin spoke today about a false dawn in commodities that started when the chinese announced their stimulus plan and I agree with him. Commodities are about to roll over.
I always like to listen to Art Cashin. He is practical and insightful.
So, I am still short NYMEX Crude Oil Futures and I expect them to hit the low fifties in the next few trading sessions. Demand is still going down, and OPEC members are beginning to cheat on their quotas, causing supply to go up (simplistically speaking).
So basic conditions call for lower prices ahead. The fact that the market is overbought also helps, and we may see a big drop in oil prices in the days ahead.
I made a few bucks today, nothing to write home about. Still, black ink is much better then bleeding. So after beginning May with the left foot I am now a little to the good. This short oil position will determine how well I will do this month.
As Jesse Livermore once said "There is a great deal in starting right, whatever the enterprise may be" and this trade is starting right. Lets see how it plays out.
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