March Crude Oil is up 50 cents at $73.96 per barrel this morning as I write.  The included chart shows that March crude oil is bouncing from its recent sharp selloff.  Prices are still below the 5 day moving average.  A close above the 5 day average may help crude oil rally further up into the recent range.  The directional movement indicators are bearish and the ADX line is rising, suggesting that more downside should be expected in crude oil.  The longer term weekly charts which I will put out later, suggest that crude oil is near a critical support level that needs to hold for the secular bull market to hold together.  Otherwise, prices could fall a lot further.  For now, I like the positions that we already have on.

 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 64 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.