Made some good money shorting via SCO (2x short oil) from $52 Oil to $48 Oil.
Today, it's made a counter-trend bounce and has been rejected at the 50ma.
It also backtested the underside of that trendline.
In addition, over the last 5 days rally in Oil, some related Oil stocks (XLE, OAS) has been very weak / lackluster. Other stocks have done better (AREX for example).
This afternoon, Oil stocks (XLE) are selling off again.
I am re-starting a small short position. If we have follow through / swing high to the downside, I will add more.
I will stop out above the 50ma and size my position to that appropriate risk. (Bought SCO 38.98, stop loss at 37.92, 0.4% total portfolio risk).
Today, it's made a counter-trend bounce and has been rejected at the 50ma.
It also backtested the underside of that trendline.
In addition, over the last 5 days rally in Oil, some related Oil stocks (XLE, OAS) has been very weak / lackluster. Other stocks have done better (AREX for example).
This afternoon, Oil stocks (XLE) are selling off again.
I am re-starting a small short position. If we have follow through / swing high to the downside, I will add more.
I will stop out above the 50ma and size my position to that appropriate risk. (Bought SCO 38.98, stop loss at 37.92, 0.4% total portfolio risk).
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Just stopped out. I was too early on the short entry.
Oil seems to be breaking upward out of this 3 day consolidation.
It does have room to run on the RSI. A better entry may have been with a stochastic crossing down from overbought, a MACD crossing down, or from a higher RSI. For now I will wait and watch.
Oil seems to be breaking upward out of this 3 day consolidation.
It does have room to run on the RSI. A better entry may have been with a stochastic crossing down from overbought, a MACD crossing down, or from a higher RSI. For now I will wait and watch.