So, I recently took a trade in NRGD because it's a standard momentum burst setup on the weekly, and had a nice daily weak structure setup built into it.
Recently, we've come to see the GDX, Gold, Silver & Usoil have all broken down, in conjunction with DXY breaking out, off of a failed breakdown.
This is a result of the US Jobs report that came out.
Ultimately im not a macro-scientologist, however the entire commodity complex breaking down, in a macrocontext where the federal reserve is raising interest rates and yield curves are predicting a recession creates the context for a homerun trade with a large amount of confirmation.
I would be kinda surprised if USOIL doesnt manage to make it to the bottom of it's previous range, if we do end up entering a recession. Somewhere around the 45$ mark.
As a result, I'm long NRGD and plan to find daytrades intraday in things like SCO and Drip over the course of the next few weeks, as things (potentially) deteriorate.
Recently, we've come to see the GDX, Gold, Silver & Usoil have all broken down, in conjunction with DXY breaking out, off of a failed breakdown.
This is a result of the US Jobs report that came out.
Ultimately im not a macro-scientologist, however the entire commodity complex breaking down, in a macrocontext where the federal reserve is raising interest rates and yield curves are predicting a recession creates the context for a homerun trade with a large amount of confirmation.
I would be kinda surprised if USOIL doesnt manage to make it to the bottom of it's previous range, if we do end up entering a recession. Somewhere around the 45$ mark.
As a result, I'm long NRGD and plan to find daytrades intraday in things like SCO and Drip over the course of the next few weeks, as things (potentially) deteriorate.
Comment:
I exited my NRGD position. It shouldn't have exhausted, in my opinion.