The dollar is moving higher again this morning and the euro lower. This has pushed your position in PowerShares DB US Dollar Index Bullish Fund, symbol UUP, originally recommended August 19 – solidly into profit territory. You should be sitting on open gains of up to 6.8% on your position.
Let’s grab gains now as the dollar looks a little toppy at these levels.
Same for your position in ProShares UltraShort Euro, symbol EUO, originally recommended April 5 and September 13. We will be targeting gains of up to 13.8% on your position.
At the same time, for those who have a position in the January 2017 EUO calls, I recommend that you go ahead and exit that position as well. You will be taking a loss on it, but I think grabbing the remaining premium makes sense and you can use that towards my next recommendation.
Oil prices are surging this morning following news that OPEC has agreed to cut oil production by 1.2 million barrels a day, making this the first output cut since 2008. My cycles are still pointing for a low in oil by early next year, so today’s move is giving you an excellent entry point to short oil. I recommend using ProShares UltraShort Bloomberg Crude Oil ETF, symbol SCO, to take advantage of oil’s next move lower.
The OPEC deal won’t hold. There is still too much infighting going on, and as I noted previously, the U.S is in the driver’s seat.
Here’s what I recommend:
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For ALL Members who own UUP and EUO:
Be sure to cancel your outstanding good-till-cancelled stop orders. For ALL Members who own Jan 2017 EUO calls:
For ALL Members:
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Go ahead and get these orders in asap and stay tuned.
Best wishes,
Larry
