EIA Comes in at 1.3 million barrels

Here's the 10:30 Wednesday EIA report

Released on 12/7/2011 10:30:00 AM For wk12/2, 2011

Prior Actual Crude oil inventories (weekly change) 3.9 M barrels 1.3 M barrels Gasoline (weekly change) 0.2 M barrels 5.1 M barrels Distillates (weekly change) 5.5 M barrels 2.5 M barrels Here's the market's initial reaction to what appears to have been a leaked number which is quite common in this report.

 A steep fall on volume, although we see a lot of countertrend move, often they set up decent day trade, so we'll keep an eye on that for anyone interested.

 1 min 3C was negative right on this a.m.'s open  and then again at a test of the opening highs, right before the report came out. We have seen this report leaked so many times that I wouldn't be surprised if that was what 3C was telegraphing.

 The 2 min chart concludes the exact same thing as above.

 And the 5 min chart shows a little more recent history, including the negative divergence yesterday that caused USO to rollover and a VERY bad negative divergence on the open today.

 The longer term 15 min chart remains leading negative, which is still surprising given the Iranian tensions, but it's there and there may be something we don't know that smart money does, so I continue to hold my crude oil shorts.

And the hourly chart remains negative leading as well.

I'll let you know if I see an intraday trade, quite a few members have done well with intraday trades on USO on Wednesday's report.