Wednesday, March 07, 2007

Oil Still Holding Firm

I bought USO this morning when I realized I made a mistake exiting my long position the other day on that minor break of the trend line. I remember hearing someone on tv last week saying that oil will be the next market to get hit, so when I saw a slight downturn in crude oil, I micro managed the position and took it off. Anyway, I'm back in.. On a seasonal basis, this is the time of year to be long oil.


IM said...

If the market takes a further leg down, do you think oil will be able to hold up ?
I notice that the oil sector is the least correlated with the overall markets.

Kevin said...

I was thinking the same thing. Will oil hold up if stocks move lower? There is only one way to find out..put the trade on and get out if it starts to roll against you. So far it's holding up nicely. As long as I see higher lows and higher highs, I'll remain bullish.

Randal said...

Same here. Oil and oil services are both doing well today and I think for the time being it will continue. Im long SLB as of this morning. first sign of a "bull trap" and im out.

The charts however seem to want to pull SLB higher and OIH with it.

Kevin said...

Hi Randal,

Yes SLB looks does SII... I had them long for a day trade today with the hopes of turning this trade into a multi night hold but I took them off in the close because they sold off..TSO was a killer. It dropped 2 dollars going into the close. I'll watch them again tomorrow.


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