Monday, October 3, 2011

2nd short entry of the day - USO

Hey all,

I left off last post with the notion that I would entertain further short trades as they developed. The Nasdaq itself has deteriorated further and those options that I sold have gone up further. While I won't moan about money left on the table I will suggest that the market is indeed heading lower. To that end, I did come across an interesting short entry on oil.

Here is the chart with entry notes


The market is very oversold on a short term basis so I wouldn't be surprised if this trade takes some time to develop. Having said that, the bear chart pattern is in and I shall risk on the trade up to 30.28 (point C on the chart).

That's all for this post,
Brian Beamish FCSI
the_rational_investor@yahoo.com
All appropriate disclaimers apply, DO NOT risk capital in options trading that you cannot afford to lose.

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