Update: Crude is making a dive. This might be the move that I waited but got stopped out. I shorted crude oil on Friday afternoon below the 82 resistance. It was an undocumented trade. Now I am closing at a loss. It's a slap on the hand for breaking my own trading rules. Oil broke above 82 over the weekend. Fortunately, the opening gap was filled before noon and I took the opportunity to cover my short. I was down 1% at the open. Good thing I didn't panic and waited patiently (with a hard stop just below the opening low) for a more rational exit. My planned stop was \$9.15, the opening low was \$8.87, and I covered at \$9.12. Just a tad under my plan but a lot higher than the low so far. Figure 1 is a chart of U.S. Oil Fund (USO) at the time of my exit. I traded the Horizons BetaPro Oil Bear Plus ETF (HOD.TO) as a vehicle for shorting crude oil. The chart of USO is a better proxy of crude oil prices as it's a few magnitudes higher volume (i.e. more popular) than HOD.TO. From the looks of it, I will stay on the sideline until at least the midterm election in the United States next week. Loss for this trade is (\$9.12 - \$9.29) * 300 = -\$51 - \$9.90 commission = -\$60.90 = -0.6%.
[caption id="" align="aligncenter" width="570" caption="U.S. Oil Fund (USO)"][/caption]