On Friday we warned [5] that massive retail inflows into the largest crude oil ETF were about to collide head-on with the widest contango in four years leading, in all likelihood, to “carnage.”
For reference, here was the setup...
[6]
…here is the carnage…
[7]
...and here is the contango coming in through yesterday until nervous selling drove the April contract lower, pushing the contango wider still, in what could turn out to be a very non-virtuous circle for all of the home gamers out there...
[8]
... as it appears we may be at a key level here...
[9]
* * *
BTFD!
