Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Once Again, Inventory Build Clobbers Crude Oil


NYMEX Crude Oil plunged from $53 to $51.38 in reaction to the news that Crude Oil inventories swelled by nearly 11 million barrels (MB) compared to expectations of +3.3 MB.

While the sell-off was acute, let's realize that the upmove from the April 1 low at $47.05 to yesterday's high at $54.13 amounted to a powerful 15% advance that was in need of a correction.

The correction was already in progress before the inventory report, which was exacerbated by the larger-than-expected build in supply.

Thus far, the weakness has corrected 38% of the entire prior upmove, with the 50% corrective plateau at 50.60.

Thus far, oil is undergoing a "normal" correction in the aftermath of a powerful advance.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!