Oil is in liquidation mode. Hint: that is opportunity if you can manage risk.

The liquidation feels wrong. It smells like panic and real capitulation. Trends are definately broken for many stocks in the space, but I have been dipping my toes (BTU has worked out awesome) . I am not plunging yet, but pricing calls and adding to USO tomorrow (original buy at $55.38 – ouch).

I am still bullish but shorted the S&P, FDX and UPS for a trade. No great reason and small positions but feel a small crack. My stops are above the recent highs. Degraaf has a chart that I used in timing my short for this morning: