Crude oil was red-hot in the month of September, up 8.3%. But oil is down 3% this morning as I pen this issue, after the U.S. drilling rig count increased last week for the first time in 7 weeks, indicating more supply is coming online.
Also, our updated E-Wave cycle forecast calls for crude to pull back with a turn date this week, followed by a decline into mid-November. It may not be a major move lower, but still it makes sense to grab gains now in two positions: DIG and USO.
Here’s what to do right away:
1. Sell ALL your shares of the ProShares Ultra Oil & Gas ETF, symbol DIG, at market.
2. Sell ALL your shares of the United States Oil ETF, symbol USO, at market.
You should have open gains of more than 17% in DIG, and 8% in USO. Go ahead and grab them now, and I’ll look to re-enter these positions after a pullback in crude.
Natural gas is also under selling pressure today, with your ProShares Ultra Bloomberg Natural Gas ETF (BOIL) position falling deeper into the red. Stay tuned as I’m likely to recommend you close out this trade too, but let’s wait for a bounce rather than selling into today’s weakness.
Get these trades placed right away, hold all other positions and stay tuned for another update very soon.
Good investing,
Mike
