*Edit: Apologies the resistance levels are not showing on the chart for some reason. I've added it below in a comment.
Current Resistance: 77
Current support: 73.8-74.25
OilWTI is $ 9 lower from the short and less than 2 weeks later we are at the target. I've taken 1/3 profit from the SCO(2X Oil Short ETF) shares this morning and will continue to hold the rest until clear signs of a bottom.
Where to next?
We hold on to our shorts until there's a clear bottoming formation and add more shorts on any pops. Today was a strong red candle to the downside and I'm expecting continuation to $68
Why?
The 10Y-2Y treasury spread (a rare important forward-looking economic indicator) is indicating that something is about to break in the U.S. economy with its acceleration in the recent days. Even the inverted treasury yield curve can be analyzed with TA and it is in a clear bull flag pattern with a price target taking it back to positive territory! You saw a massive spike in this inverted yield curve when Covid hit and when the regional banks went bankrupt. If the yield curve accelerates upwards any further, -0.40, I will be adding to equity and commodity shorts + heavily increasing my cash position. In my opinion this is not the time to be naked long equities or commodities. Deep in the money covered calls are another nice way to protect yourself.
Stay safe, happy trading!
(Click each part for their in-depth posts)
Part 1: Stopped out on initial entry.
Part 2: Stopped out a second time and immediately re-entered. The 3rd time worked.
Part 3:
Part 4:
Part 5:
Current Resistance: 77
Current support: 73.8-74.25
OilWTI is $ 9 lower from the short and less than 2 weeks later we are at the target. I've taken 1/3 profit from the SCO(2X Oil Short ETF) shares this morning and will continue to hold the rest until clear signs of a bottom.
Where to next?
We hold on to our shorts until there's a clear bottoming formation and add more shorts on any pops. Today was a strong red candle to the downside and I'm expecting continuation to $68
Why?
The 10Y-2Y treasury spread (a rare important forward-looking economic indicator) is indicating that something is about to break in the U.S. economy with its acceleration in the recent days. Even the inverted treasury yield curve can be analyzed with TA and it is in a clear bull flag pattern with a price target taking it back to positive territory! You saw a massive spike in this inverted yield curve when Covid hit and when the regional banks went bankrupt. If the yield curve accelerates upwards any further, -0.40, I will be adding to equity and commodity shorts + heavily increasing my cash position. In my opinion this is not the time to be naked long equities or commodities. Deep in the money covered calls are another nice way to protect yourself.
Stay safe, happy trading!
(Click each part for their in-depth posts)
Part 1: Stopped out on initial entry.
Part 2: Stopped out a second time and immediately re-entered. The 3rd time worked.
Part 3:
Part 4:
Part 5:
Comment:
Current support and resistance levels.
Trade active:
Sold 1/3 of short here.
1/3 position remaining!
1/3 position remaining!
Trade closed: target reached:
Covered final 1/3 in the 68.50 area. Position closed. Wonderful trade.