Wow, I hope that for those of you who sold crude at 92 on my suggestion still have some shorts left. I never thought we’d break this hard, but, my guess was right, people got short based on fears about Egypt. And were promptly rewarded for their actions with swift losses. A nickle a contract is 5k a contract. If you had a couple hundred contracts on, it was a costly expedition.
Be that as it may, the longer term trend line is still bullish. Therefore, you want to be buying this break as an opportunity. I would want to scale in buy at 86.50, which is trend line support area. Then I would like to buy it at 86. I would risk it on a test of the Jan 28th low at 85.11.
That is all for crude.
For Dow Cash, I think now you have to look to 12,600 as an upside and then, the next fat, round number up there as a target, 13,000.
A pull back down to 11,200 would be a buying opportunity, especially if it is heralded by panic, accompanied by some one on CNN walking up and down Wall St. looking for falling bodies.
Good Trading
