Wednesday, June 17, 2009

Reflection on DTO (Double-short Oil) and USO (OIL)

I entered a trade on DTO today at $71.81 with a stop at $71.09, which turned out to be a very quick trade (loss of 1%). Saying that, I still like its potential. Please refer to the following chart for my rationale on entering the trade. On reflection, I would have done it again, because all the key technical indicators (stochastics, PPO, and CCI) were all in alignment. Now, take a look at USO, which is the mirror image of DTO, and tell me do you want to be long or short oil based on these two charts?

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