Commodities Essential. UPDATE 28 February 2012

Update on crude oil and UCO.

Crude oil is down for the second consecutive day after rising sharply for most of this month. You currently hold a position in UCO that is showing nice open gains. While crude oil had become extended and perhaps due for a correction, like we’ve seen yesterday and today, I’ve wanted you to hold on just a bit longer to play for another upward push in the price.

But now that crude has pulled back nearly $3 per barrel, I’m getting close to recommending you cut the cord on this position and take gains. I don’t want to tighten up the stop-loss or exit UCO just yet; but I will consider making a move first thing tomorrow morning if crude doesn’t firm up as I expect it to.

Be sure to stay tuned. 

Trade Essentials.

No new recommendations or adjustments at this time.