I’ve been studying crude and potential oil trade setups for some time. Crude oil appears to be setting up for a move higher. It’s sitting just below the 21-day exponential moving average. Once it clears this hurdle crude most likely make a push to the 104-price level.
Many stocks stand to benefit from higher crude prices. Stocks like SLB, CLR and FANG come to mind. But, there is an easier trade. If you’re so inclined and can actively manage your account buying calls in USO might be an option for you. You’d want to use calls with a delta of 70 at a minimum along with a 45-60 timeframe.
Gold Trade Update
Gold took a step backward today. The move didn’t make sense based on the state of our economy. But, this is the market and it doesn’t have to make sense. We as traders and investors have to act appropriately –without ego and without excuses.
I’m still bullish on this setup at long at gold continues to hold the $1,288.00 price level. This level has been critical in serving as a base of support. If this level breaks you and I need to cut this trade free. If we hold $1,288 then our calls with a delta of 70 45-60 days out should be fine.
I’ll continue to keep you posted on stocks and commodities that I talk about in this newsletter and from my radio show with Danny Stewart – The Wall Street Shuffle.
If you’d like to talk about rule based investing, where the markets are headed or if you would like to join us for our trading / investing open house please email me – Tim.Reazor@NorAmAsset.com
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.