March Crude Oil is down 8 cents at $73.60 per barrel this morning as I write.  The included chart shows that crude oil is still involved in a fairly steep decline in price this past week after it fell away from the previous consolidation pattern.  The next good support level for March Crude Oil will come in at the uptrend line coming up from the July lows.  That price level today comes in near $71.00.  Below that we could be looking at the two previous price lows in the $67.00 and then the $64.00 price areas.  The directional movement indicators are bearish and the ADX line is rising suggesting trend strength in this down move.  I recommend holding on to our current positions.

 Followers of this letter should have the following positions:

 Long one March Crude Oil ($69.00 strike) put option from $2.90 and short 2 March Crude Oil ($64.00 strike) put options from $1.65 each for an overall credit of 40 cents or $400 gross.

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 68 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.