March Crude Oil is down 23 cents at $77.95 per barrel this morning as I write.  The included chart shows that crude oil was higher, earlier this morning on the back of the weak dollar, but has since given back all its gains and then some.  If crude oil can’t rally when the dollar is making new lows and gold is soaring, then this market has a problem.  Or you could say that crude oil has a mind of its own.  As discussed yesterday, March Crude Oil still shows an overall long term bull market in progress that is progressively making higher highs and higher lows.  The problem for investors is that the swings between the weekly highs and lows is fairly large, about $12 to $13 per barrel, so the timing on entry points is very important.

 Followers of this letter should have the following positions:

 Followers should also be long one March Crude Oil ($62.00 strike) put option from $1.51.

Short 2 March Crude Oil ($57.00 strike) put options from 83 cents each.

 March Crude Oil options expire in 85 days.

 David Hall

 The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.