Crude oil prices rallied strongly today and closed at $70.75 (Nov. contract chart) at 4:30 pm EDST. In after hours trading the price has risen even more and is now above $71. I may have underestimated the "wildcard" factor of investor's fear of upcoming (November) sanctions on Iran, but even if that wasn't a strong influence on crude prices today, reports of U.S. crude supplies at a 3.5 year low certainly contributed to the kick up in price. The price is now above our $70 - $71 stop loss range, and this new high is not happening in a reversal zone so there is a good chance it could go higher. This means I am going to cover (unload) my short position in crude. We entered this short position yesterday morning around $69.50. At the current price this will give us a loss of around 2%. If prices continue higher into the first week of October we will consider selling short again as that new high will most likely be the final top in crude's 3 year cycle. Selling short a correction from that point would more than make up for our 2% loss here. Unloading my short position in crude now for tomorrow's market open.