Trading Crude With A Short Bias

In the last week of April, I wrote in these pages that even though the chart for crude futures (CL) was flashing a buy signal, fundamental factors had a bearish tone. As a result, I said that I would be trading with a short bias, looking for a pullback to the mi-$60s. That level was hit just four trading days later… Then, in mid-May, when the market barely reacted to the news that the US was buying to replenish the Strategic Petroleum Reserve (SPR), I again took a bearish stance.

Nothing had changed then in terms of the fundamentals. US…