At the moment, we're sitting at important support at 29.60. Below 29.50, we will have confirmation of the H&S pattern and should swiftly move lower. I've been sitting short and will continue to do so. with a target at 27.50.
Comment:
Yesterday's "Golidlocks" API report - not too much larger than expectations, but still a sizable build (>+2mmbb), coupled with crude's overnight price action gives me comfort that short-sellers won't be coming out en mass similar to the prior two reports. We'll still need to wait to see what the EIA reports at 10:30am today, but the moves this morning in crude make me believe Janet's lack of über-dovishness is weighing more heavily on traders minds'. Last night, I saw a breakdown in an ascending triangle forming on the 30min chart and opened some weekly 25 puts. (www.basementmacro.co...25-put-22-mark28-45/) I'm looking for new lows.
