SOLD -70 UCO @10.33

I'm out of my crude oil trade too. I'll be relocating this weekend and will probably be out of internet access for a week or more. UCO/USO isn't moving anywhere, so I'm taking it off the table just to be safe while I'm away.

After this trade, I'm left with 50% long and 50% cash in my account.

[caption id="attachment_1089" align="aligncenter" width="500" caption="U.S. Oil Fund"]U.S. Oil Fund[/caption]

Posted 30 January 2009 in stocks.

BOUGHT +70 UCO @11.44

S&P500's 850 level is still holding up this morning. So I'm adding to my longs with this energy play. I'm at 75% longs and 25% cash now. This USO position is intended as a short term play with a tight stop.

The chart of crude oil is looking good. Now that the world realizes we aren't coming to an end, commodities and global trade plays should bounce back from their oversold levels. At least that's my rationale for choosing oil.

[caption id="attachment_1049" align="aligncenter" width="500" caption="mini Crude Oil Future"]mini Crude Oil Future[/caption]

Here's a chart of the ETF for a better chart read.

[caption id="attachment_1050" align="aligncenter" width="500" caption="U.S. Oil Fund ETF"]U.S. Oil Fund ETF[/caption]

However, I chose the similar UCO instead of USO because it's cheaper on the per share dollar value. The two should be highly correlated. As you can see, the UCO ticker doesn't have much history. So I just use the USO chart for analysis and trade with UCO.

[caption id="attachment_1051" align="aligncenter" width="500" caption="ProShares Ultra DJ Crude"]ProShares Ultra DJ
Crude[/caption]

Stop: \$10.30, hard stop.

Target: \$15.50

Posted 16 January 2009 in stocks.