Let's use DTO to play for another move lower in crude oil.
Geopolitics are back on the radar screen, but it seems to me the fundamentals are set to drive crude oil prices lower still.
While the last few sessions of price action have been dramatic, much of it appears due to a short squeeze after speculators became overly confident in the bearish direction for crude.
But with much of that squeeze over ... and much of the geopolitical squabbling looking like old news ... it seems now is a good time to get positioned for crude oil to make a fall towards $70.
I am recommending you use the PowerShares DB Crude Double Short ETN (DTO).
Here is what I suggest you consider doing now:
DTO (Last price: $49.40)
BUY shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at the market. Then place an order to SELL ALL your shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at $38.90, STOP; this order is good till cancelled.
[Note: for those who prefer not to use leveraged or inverse ETFs, consider selling short shares of the United States Crude Oil Fund (symbol USO) with a stop-loss around $39.00 or so.)