Short Of Century Setting Up In Crude At $95 Level

9:09 PM San Francisco - As traders being able to look at the markets from a sequential standpoint is critical in my mind to effectively anticipating market movement and being ready to execute when it comes time to the moment of truth. As a commodity pool operator, I spent a great part of the waking day scouring the market for opportunities and prepare myself for such events. In many cases, they don't occur as I consistently aim to put myself in a position of extreme advantage by letting the market come to me and work within a respective ebb and flow.

Today on SniperScope, I pointed out to everyone the potential emergence of a massive right shoulder forming on Crude oil at the 94.80-95.38 level. There are a number of points of agreement that support this area that it is critical that traders be ready to act on the short side when/if the market arrives to this level. As you can see from the attached chart, we have an obvious right shoulder that has worked its way in at this level based on key pivot highs from early and late November. $94.80 is also a .618 retracement from the high near 100 down to the recent pivot low slightly above $85. We also have a key 1 x 1 projection setting up at 95.30 measuring the move from 85.42 to the high at 92.71, (7.29) off of the recent pivot low at 88.07 giving us a target at 95.36.

Beyond that I rely heavily on my intuition and have been getting visions of a move like this setting up with just the right dynamics behind it. Seeing the key trend line in place from the low of August (67.88) to the low of December (85.37), that same trend line sets up near the 95 level if this market takes on an upward trajectory. A short term fib 1.382 expansion also sets up at this level literally giving traders the pocket aces of all crude shorts.

My goal in the next 5 trading days is to play the move up to $95 and promptly reverse at this level and go short, riding a core position down to $80 a barrel, while trading around the rest all the way down.

 I will be doing this on SniperScope, the live trading room I host that shows real money, real positions, real orders and live commentary for the viewer to see. To learn more about SniperScope, please visit http://www.osoktrading.com/Sniper1.htm

If anyone is going to the New York Traders Expo Feb 16-19, please stop by and see me as I will be competing in the live trading challenge.