By the Oil Book

After its recent snapback rally, crude oil is seeing a reversal lower today. 

On the USO ETF daily chart, below, note the upper Bollinger Band asserting itself yet again. Furthermore that declining 50-day moving average is coming into play, as you might imagine in a downtrend. 

As I have noted before, crude remains mired in a bear market (price well below declining longer-term moving averages on the daily chart. Thus, it is premature to call anything beyond a temporary bottom here. 

In addition, the risk of a rollover remains very much in play, even if it is to simply base out and retest recent lows. 

The good news is that we have some parameters in place now--Bulls wants to see price base out under this 50-day a few days before moving higher yet for a continued snapback rally, while bears are obviously going for that next leg lower. 

As such, both DWTI and UWTI are on my radar, two short and long levered crude ETFs I day-traded last week in real-time on social media for wins. 

UPDATE: I added to my open $BIS long at $42.26 from my $41.79 entry last Friday. Stop still below $40. This is about 6% of my portfolio now, shorting the biotech sector at-large.