Oil is coming into what could prove to be a major low. While my short-term models, as indicated in yesterday’s issue, show one more slide …
My longer-term models show bottoming action may already be forming, per this chart here.
Even if oil slides a bit more, it’s likely within 10-15% of a final low, making it just outright silly to try and perfectly time one more drop.
Moreover, as of yesterday’s closing prices, there are nice open gains of as much as 28.76% on SCO and 96.09% on the United States Oil Fund January 2016 put options, strike price $14.00 (USO160115P00014000) — depending upon when you entered the positions.
Let’s grab them. I am also tempted to reverse and go long, but let’s wait a day or two more before doing so.
Meanwhile, for all other markets, as noted in yesterday’s issue, there have been no changes. So hold all other positions and related stops.
Now, to take profits on your oil positions:
For ALL Members:
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1. SELL ALL of your shares in ProShares UltraShort Bloomberg Crude Oil ETF, symbol SCO, at $122.50 or better, good-till-cancelled. When filled, be sure to cancel any protective sell stop you may have placed, if at all. 2. SELL ALL of your United States Oil Fund January 2016 put options, strike price $14.00 (USO160115P00014000) at $2.27 or better, good-till- cancelled, to close. |
NOTE: Do NOT sell at the market. You will simply be handicapping yourself and other members.
Stay tuned!
Best wishes,
Larry
