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.
No new recommendations or adjustments at this time.