March Crude Oil is up 59 cents at $79.25 per barrel this morning as I write.  The included chart shows the impressive rally off the recent lows in crude oil.  Even the directional movement indicators are close crossing back to the bull side.  The chart shows a light blue trend line coming down over the highs that were made during October and November, that comes in today near $80.30.  A close over $80.30, especially at week’s end would be very impressive and probably warrant a new long trade.  Until then, I would be watching for a place to sell.  For now, hold on to current positions.

 Followers of this letter should have the following positions:

 Long one March Crude Oil ($69.00 strike) put option from $2.90

Short 2 March Crude Oil ($64.00 strike) put options from $1.65 each.

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 51 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.