We have CPI at 8:30. If the number is bad, the market tumbles. If the number is good the market will rise. But what if the number is bad and the market rises? A slim chance, but we could go 350 up on a short squeeze and it would signal to me that we have finally bottomed. The most likely scenario is that the number sucks and we go down. I’m throwing out crazy end games because in my opinion the market is still in no mans land.
I am still short OIL (USO) and have a bit of room left on my stop. I think it will tube, I just hope it’s before my stop. Tomorrow is expiration for crude options so it should be volatile. I discovered another way to play oil short that is linked directly to West Texas Intermediate and it is DCR, an inverse play on oil,that is, when oil goes down,this goes up. Sometimes USO is hard to borrow and DUG for some reason doesn’t exactly mirror the move in crude.The level I’ll be watching, for a meaningful break on USO is $85.85 and then $84.70. I think we do a trap door from there.

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