Thursday, August 9, 2012

USO still in decent Risk:Reward position

Yesterday I posted 1 2 3 4 5 6 updates including starting a USO Equity model portfolio short position that is so far in the green and has room to add to, which while I'd like to see the market crack to the downside and get on with it, I'd also like to add to that USO position and fill it out on some price strength/underlying trade weakness.

Here's USO today...
 Intraday, as usual traders placed stops at intraday support and a penny or two below, they were stopped out (or there could be some short orders triggered, but I'd bet most of those are stops). This is why I harp on not putting stops at obvious places-you'd think traders would have learned by now! Also I prefer to keep stops mental rather than show the entire trading world where my "Uncle" point is, the bigger your position the more important this concept.

 1 min USO and one of the reasons for starting a short equity USO position yesterday.

 2 min has added to the leading negative today

 So has the 3 min

 As well as the 5 min at a local new low.

 I wouldn't have entered an equity short in USO based on the charts above alone without a 15 min chart like this.

 The 15 min adding to the leading negative today

And the hourly as part of the bigger picture, why I'd like to add to the short and fill it out...

For risk purposes, USO isn't in any different position today than it was yesterday.

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