Alert: crude oil supported by technicals in near-term.
Let’s add UCO now.
The market doesn’t seem keen on risk aversion; investors want to keep playing. Although I lean toward being neutral/bearish on crude oil over the next 3-6 months, I think the technical pattern is shaping up to suggest crude oil bounces higher from here over the next several days. I recommend adding UCO (ProShares DJ-AIG Ultra Crude Oil Fund) at the market to play for a short-term breakout that could happen soon.
[Additional details on this set-up will follow in the weekly issue to be sent later today.]
UCO (Last Price: $44.25)
Buy shares of ProShares DJ-AIG Ultra Crude Oil Fund, symbol UCO, at the MARKET. Then place an order to SELL ALL your shares of ProShares DJ-AIG Ultra Crude Oil Fund, symbol UCO, at $41.30, STOP; this order is good till cancelled.
[Please note this is a 2x-leveraged fund which means it will move roughly twice as fast as the underlying price of crude oil.]