Thursday, May 20, 2010

USO Tests Support

USO (crude oil) is another market I've been bearish on although it appears I did cover my shorts a few days too soon. Right now USO is testing the lows from last summer on very heavy volume. I'd like to see this market bounce so that I can enter the market once again on the short side. Right now I have no position in oil but if USO does rally, I will be sure to update what I am doing with this market. Stay tuned!


Anonymous said...

I'm trying to figure out why you are so bearish on USO. Is it because it fell from a trading channel?
Being a believer in peak oil I'm considering buying the dips (not directly in USO). So far I was stopped out today.

Kevin said...

Well right now I don't have a short position anymore.. The market looks due for a bounce but I am not looking to buy it. I'm watching natural gas for a possible buy in the next few days.

Anonymous said...

Looks like USO bounced from the support and its rallying so far (Fri AM). I'm long energy again (including USO and UNG via calls, but mostly energy and energy services stocks) with tight stops.
Wish me good luck as I lost a decent chunk of money getting stopped so far.

Kevin said...

I think you're in two good trades. I'm tempted to buy USO but for now I have on just UNG long.


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