A total bull blast off. The bulls took the oil market from the verge of a major breakdown to a place somewhere out in the stratosphere. It seems some traders actually take Hugo Chavez seriously when he says that he will cut off oil supply to the US.

 

If it is economic war between the US and Venezuela then Venezuela is way under gunned.  The Venezuelan economy is in shambles and it is a war that they are losing even though it has not started yet.

 

It wasn't just Venezuela that had oil surging higher yesterday. It was the cold, it was refinery problems and it was partly the strong stock market.  In short the shorts covered and the market popped.

 

So now it's the  bulls turn to see if they have what it takes to keep the drive alive. Remember oil was in the 86 handle just two trading sessions ago on Thursday and yesterday soared near 95. To justify that bounce the bulls will need more news! It is obvious by the market action that we fell too far too fast and the bulls exploited the situation.  Yet with the economy slowing, oil is  still targeting the 67 a barrel area on the long term but we may have to be patient before we get short again. But use the strength to put on bearish option strategies.

 

Short report today as I am on the run! Have you seen me on Fox Business yet? Call your cable operator and demand it!  And you can  also catch me  on Sky News. Call me at 800-935-6487 or email me at pflynn@alaron.com to open your account!

 

Stopped on the high of the day on short March crude oil from apprx  8350. Ouch! Sell March crude at  9350 - stop 9450.

 

Stopped on short March RBOB from apprx 23900 at  apprx 24000. Sell March RBOB at 24000 - stop 24500.

 

Stopped on short March heating oil  from apprx  26000 at apprx  26300. Sell March heating oil at 270 -  stop 280.

 

Stopped on short  March natural gas  from apprx  850 at apprx  857.

Sell March natural gas at 880 -  stop 903.

 

Have a GREAT day!