Oil prices are still moving higher following the OPEC agreement, and unfortunately you should have been stopped out of SCO today when it hit our protective sell stop at $69.40.
That stinks, but that is what stops are for, to limit your risk.
The good news: You should have also bagged nice gains yesterday, up to 7.47% on your shares of UUP.
And 14.43% profits on your EUO position. Nice work! There are more potential profits where these came from. I’m eyeing several new trades right now in multiple markets because macro events are quickly coming to a head.
The OPEC meeting is out of the way now, but the profit potential going short crude is still huge. This is one of the most extended markets I’ve seen in quite a while. And mark my word, before the ink dries on this agreement, you’ll start hearing about OPEC members cheating on the deal. When that happens, we’ll see a major downside reversal and my aim is to make sure you profit from it.
But remain patient for now. My models are still pointing to lower oil prices into next year, but wait for my signal to get back into a short oil position.
As for other market-moving events: The Italian referendum is Sunday, the next chapter in the death of the European Union. Then we have a Federal Reserve policy meeting on tap the week after next.
This convergence of market moving events is bound to trigger some major trend reversals and I’ll be watching the market reaction like a hawk.
For now, continue to hold all open positions and I’ll be sure to alert you when it’s time to make your next move.
Best wishes,
Larry
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