Next Monday, May 31st, it is Memorial Day Holiday. All US futures market pits will be closed including the stock market. There will be some limited computer trading until 10:30am Monday morning in equity indexes, and until noon Monday in currencies, interest rates. The volume should be very small. Today, the pits for trading in currencies and interest rates will close at noon. All these times listed are Central Standard time. I will be leaving town at 11:00 AM TODAY just for the weekend, and will be back in the office Tuesday morning, June 1st. So, if you have orders that you just have to have done after I leave today, please enter you orders straight to the Chicago trading desk. I would imagine that volume will be very light today as many traders among others will be traveling.

August Crude Oil is down 27 cents at $75.35 per barrel after reaching $76.79 overnight. The included chart shows that crude oil is in a sharp short covering rally. So far, we have seen a $21 per barrel drop and a 6 ½ barrel short covering rally. That is about a 31% correction of the down trend, which is very close to a normal Fibonacci correction. The directional movement indicators are still bearish but narrowing and the ADX line has rolled over. This ADX rollover could be suggesting that the lows are in and that we are going to see an extended period of back and forth choppy sideways volatile trade for the next few weeks. We won’t know until crude oil comes back down and tries to retest back towards the lows again, which should be soon. Volatility should remain high and make it very difficult to trade. I recommend standing aside. Those who dare to trade better be very nimble and be ready to take a lot of overnight price risk.

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.