simonsays452
Short

H&S In Oil. Still shorting.

FX:USOIL   CFDs on Crude Oil (WTI)
394 7 2
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. (http://www.basementmacro.com/uncategorized/bot-4-clh6-11000-mar-16-loh6-25-put-22-mark28-45/) I'm looking for new lows.
It's always a good idea to keep the big picture in mind.

If we were to see another bounce off the 29.00 level, akin to the prior rebound, we'd expect this move to top out below 40.00.
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