Bought 250 HOD.TO @ $10.34

Current state of affair: S&P500 testing 1108 resistance. Oil testing 77.50 resitance. EUR/USD testing 1.2350 resistance. USD/CAD marking higher bottom at 1.0280, low of day was 1.0260.

I am shorting oil (HOD.TO) here because it looks like that the rally is non-sustainable in the short term as we are testing resistances across the board within a longer term downtrend. Moreover, the reward/risk is good at this point since the stops are clear (e.g. the various resistance price levels in first paragraph).

Figure 1 is the long term chart of U.S. DB Oil Fund (DBO). It shows DBO is at the top of a congestion zone in a longer term down trend.

U.S. DB Oil Fund (DBO)

Evidently, my stop is DBO pass $25. That is around $10.00 for HOD.TO.

Thus, my risk is ($10.34 – $10.00) * 250 = $85 + $9.90 commission = $94.90 = 0.98% of my Questrade RRSP trading account.

Frankly, my conviction in this trade isn’t that strong. But as the setup is there and the reward/risk is good, I am taking a light stab at it.

DBO intraday

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