Trading Crude Oil Futures Using the Inventories Report

In tonight’s video, we talk about a potential earnings play in Delta Air Lines (DAL) and discuss the short in crude oil after the inventories report. 

For DAL, we have the following stats using our Smarter Earnings tool:

  • Over the last 2 years, DAL has gapped up on 6 out of 8 earnings
  • Of those 6 times, DAL has filled its gap all 6 times (regardless of earnings beat or miss)

We talk about how you can use that information to trade DAL tomorrow morning. 

We also had a near-perfect short set up in the crude oil market, after the inventories report came out. The report showed a surprise build, in which refineries were operating at only 85% of their capacity. 

In simple terms, refineries are not operating at max capacity because we already have a surprise build — supply is greater than demand. With a bearish bias already, our short in Crude Oil was almost picture-perfect.

We had a total of 1 trade that set up today, for a net P/L of +$850. 

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