Volatile days in crude trading

Oil shorts were caught in a nasty squeeze yesterday as crude prices jumped nearly 7%. The downward momentum resumed in Asian and early European trade but as the US came to life a second wave of buying took crude to $46.75.

That's the 50% retracement of the October range and offered some modest resistance. In the past 20 minutes crude prices have fallen back close to unchanged.

Nothing has changed in the oil fundamental picture although the seasonals begin to improve late in the year.

I like using the 50-61.8% range as a place for fresh shorts.