Most traders of my acquaintance appreciate that the periodic crude inventory numbers are highly manipulated and likely have little correlation with reality.
Zero Hedge (my favorite link) has a timely piece on the issue and the key word here is "unexpected". By whom is the question. Not by OPEC and not by Goldman. It's funny how these announcements find oversupply one week and next week there's suddenly no inventory. Maybe wikileaks can hack the Saudi oil ministers emails so we can get some clarity on the matter but until that time here are a couple pairs setup with XLE (this is the diversified SPDR oil sector ETF, NOT crude) paired against XLB (SPDR basic materials ETF) and UNG (natural gas ETF). These are 6 months studies with a 10 day time stop on all positions.
The risk profiles here are quite attractive as can be seen by the actual chronology of trades.
When the trade triggers line up between the pairs the odds are seldom wrong.
This pair studies are part of a short term credit spread service for SPY, QQQ, XLE and XLF that we may begin next year...just testing the waters for now.
The charts have a lot of info but a single click on them will enlarge considerably.
