Get rid of the "worry" stock and replace it with something that has the potential to zoom upward.
I'm talking about USO and Oil.
I don't often look at ETFs, but I find USO to be very interesting right now. This ETF, United States Oil, closely tracks the price of crude oil in New York.
This market appears to have completed a formation that could have great profit opportunities in the near term.
USO is currently trading at $32.56
It gave a monthly buy triangle last week. This is the first buy signal since April of 2008.
How high can USO go? If we use Fibonacci retracements, a 23.6% retracement would put USO at $45.21. A 38.2% retracement would put USO at $59.33.
Now you do need to exercise caution here by setting a tight stop loss. What makes this a risky play is that inventory levels of crude oil are rising because global demand has dropped off so much due to the global recession. Many analysts feel that a bubble has formed in oil over the last month as fundamentally, the current price of oil can not be justified.
In my new video below, I explain in detail a strategy that I am using to approach this market.
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Stock Quotes
| NASDAQ | 2847.21 | |||||||
| S&P 500 | 1315.99 | |||||||
| ^RUT | 764.64 | |||||||
| TVIX | 8.72 | |||||||
| FCEL | 1.02 | |||||||
Stocks Above I Currently Hold In My Own Trading Account: TVIX, FCEL
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Guerilla Trader Quote
“All Warfare is about Deception. Hence, when able to attack, we must seem unable; when using our forces; we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near.... If your opponent is choleric temper, seek to IRRITATE him. Pretend to be Weak, That he may grow ARROGANT.”
by Sun Tzu
“All Warfare is about Deception. Hence, when able to attack, we must seem unable; when using our forces; we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near.... If your opponent is choleric temper, seek to IRRITATE him. Pretend to be Weak, That he may grow ARROGANT.”
by Sun Tzu
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