That's what we like to say when we get a nice dip when we're shorting. It indicates both the excitement of the trade and it's also a reminder that Futures trading is a lot like playing Chutes and Ladders – things can quickly reverse on you, so you have to know when to take those profits off the table. Yesterday, we initiated our short oil position (/CL) during our Live Trading Webinar at 1pm and, before it was over, we had reduced the position to just 2 contracts, which we decied to leave overnight. Those two contracts made another $2,300 overnight and now we're up $4,110 on a trade in just 19 hours – not bad for a free webinar!
Because we know the NYMEX trading is FAKE, we knew the movement yesterday was also FAKE so we stuck with our short positions despite the "strong" oil inventory report, where the headline 5.2Mb draw in oil was also FAKE because, in fact, we imported 6.9Mb less oil last week than the week before. So not only was the draw NOT due to an uptick in demand but, without the hurricane disrupting shipping, we would have had a 1.7Mb BUILD last week. Meanwhile, those FAKE November contract orders are almost all gone – as we predicted:
That's right, there are now 500,000 (96%) FAKE orders for December crude oil and, as of yesterday's close, when we were shorting it (2:35 pm), it was $51.82. Now it's testing $51 and 0.82 on a futures contract is $820 per contract. That means those 519,754 contracts lost $426M this morning – ouch! Fortuntately, we were able to lock up $4,000 of that gift money for ourselves – congratulations to all our Members!
We're done with oil shorts for the moment. Today is rollver day to the December contracts so anything can happen though, of couse, we'll short below $51 or $51.50 if we get there on a bounce, using those lines as stops and, of course, we still have our longer-term Oil ETF (USO) puts. We can only hope that, by making contract spoofing more expensive for the pumpers, we can do just a little to curb the practice at the NYMEX…