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Yesterday, just before the close, I mentioned going into a very large long position on USO.
One reader mentioned how I was probably too early, since – – just after the close – – a very bearish report came out about crude oil. I was a little disconcerted to see that, but as a "pure" chartist (or as much as I try to be), I didn't let it faze me.
Good thing too. USO looks super.
These days, since the market lacks any firm, consistent direction, any /ES trading I do is short-term and opportunistic. I am rarely comfortable "sleeping on" a position unless the potential far outweighs the stop-loss level.
After the close yesterday, I went long the /ES at 813. I set a reversal (that is, not only close, but go short) at 811.25 at first, but then edged it down to 810.50. That level was hit, and I was then short 10 /ES after having been long 10 /ES at a loss.
The market worked its way down to 803, and I decided that was enough. Hardly a huge move, but it was enough to recover my prior loss and make a few thousand bucks to pad the account, so I was satisfied. I'm glad I did so, because by the morning, the market was at 817 again. The good news, naturally, is more government handouts (TARP), not anything actually legitimate and sustainable.
Looking at the /ES now,a new short at about the 820 level looks intriguing. Continued strength above those levels would cause me to back off. The "duh" short level is way up around 840.
Your people amaze me. I'm posting this comment cleaner before heading upstairs. Maybe some of you can get a bit of shut-eye before Wednesday, eh?
No? OK, didn't think so. Good night.
I'm long 10 /ES at 813, but I've got a reversal order in (e.g. sell 20) if we break 811.25. I am short 10 /ES at 810.50 We are very close to breaking have broken a pretty significant channel for the short-term
