Alert: a near-term top for crude oil?

23 August 2012: Let's add back a position in DTO.

Crude oil has retraced 61.8% of the downtrend from March to July. The speculators are heavily bullish on crude oil; and using specs as a contrarian indicator, it's time to sell crude. Adding to the decision, US stocks have not reflected the same bullishness that commodities have in the last few days. And based on fizzled optimism after yesterday's Fed minutes, it seems we're due to work lower in the near term.

 

Trade Essentials.

Here is what I suggest you consider doing now:

DTO (Last price: $40.38)

Buy shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at the market. Then place an order to SELL ALL shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at $37.24, STOP