Saturday, December 27, 2008

Oil (USO) Entry

USO is very oversold. Price went down almost continuously from 40 to 28 and seems to be stabilizing here. I may take a small position on weakness.

I already have an intermediate term holding in DXO.

2 comments:

Tom said...

Best of luck. This market is in a major confirmed downtrend and I see no reson to be involved at this point. Lot of people have been attempting to pick a bottom since above $100 oil. So far, ALL have been wrong.

Dutch

The Market Speculator said...

I am not attempting to pick a bottom. This is a short term "oversold bounce" trade (not a bottom pick).

I've used this trade many times since summer and it has worked out quite well.