The 78.08 rally target flagged here two days ago caught yesterday's top within a nickel. I hadn't explicitly suggested getting short there, but at least one chat room regular did. He felt he'd covered prematurely -- the futures are currently trading down 97 cents from the high, but he exited much earlier -- so let me repeat the advice I gave him in the chat room: "An easy way to know when to cover is to simply use the impulse-leg rule. Drop down to July Crude's one-minute chart and you'll see that we would become buyers if it shot up above 77.83, an external peak. That's really where a rally would become threatening to a scalper/short-term trader who is short." Indeed, the best place to cover a short position will often be at the price where you might have gotten long if you'd held no position at all.
CLN10
CLN10 – July Crude (Last:74.85)
– Posted in: Current Touts Free Rick's PicksCrude has been rallying for the last week into the weight of a powerful downtrend that became manifest on the weekly chart in late May. The rally projects to 78.08, but we shouldn't be surprised if it sputters out somewhere beneath that Hidden Pivot. I'd suggest trading it from the long side nonetheless, although the action was too squirrelly Monday to leave much in the way of handholds for night owls.
