Commentary: The crude has followed through to the upside this week. The overall lack of demand is known. The abundance of crude above ground is known. The question now, Are the lows in? It was my thought a trade to 17-20 nearby would hold. The May traded to 1933. Is this enough, remains to be seen. The US now will take a leadership role and attempt to stop the Saudi trade war with the Russians, and really the globe. In addition, the President will meet with heads of energy companies to craft a game plan. The US and China are now buying up large quantities for the security reserves. There will be many different approaches to help out. TBD what will work. The tech in crude this week is a bit positive with the nearby crude trading above the 14,21 MA. This could bode well in the long run. The question is if pull backs will hold. If so the lows may be in and the market will look for long term positive news. Exercise Caution.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
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