Alert: crude oil finishing its relief rally?
Let’s add DTO now …
Crude oil has staged a very steady, almost textbook, corrective rally along with risk appetite. Now that crude oil has bounced to test its initial corrective high mark, it is coming upon resistance at its 50-day moving average. There may be some additional upside, but I think momentum has been lost and crude oil will roll over again soon.
Let’s add DTO (PowerShares DB Crude Oil Double Short ETN) as a short- to medium-term play to capture a sharp breakdown in crude oil prices.
DTO (Last Price: $59.62)
Buy shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at the market. Then, if and only if this order is filled, place an order to SELL ALL your shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at $54.75, STOP. This order is good till cancelled.
[Please note this is a 2x-leveraged, inverse fund which means it will move roughly twice as fast, and in the opposite direction, as the underlying price of crude oil.]