December Crude Oil is down 72 cents at $78.83 this morning as I write. The enclosed chart shows that crude oil is still involve in a strong bull move, but a correction seems to be taking place at the moment. Crude prices rose about $16 per barrel in two weeks and so far the correction has been 2.5% which is no big deal. Crude Oil certainly has more room that it could correct on the downside. The directional movement indicators are bullish and the ADX line is meandering sideways to higher. I am looking for a spot to put on a bullish biased trade out into February or later. In the mean time, I am very content with our existing December positions.

Oct. 28, 2009
David Hall