A Short Swing-Trade in Oil
It is a shame that I have to move to the commodity markets to see some price action. The latter half of 2011 saw nothing but volatility in the equity markets, but since the start of this year we have had a virtual freeze there -- kind of like European interbank lending.
One market that continues to see some volatility and promise is oil. I'll use the United States Oil Fund (USO) to talk about the commodity, as it is a good proxy. Since my bias is the short side, the instrument I am using to do the shorting is ProShares Ultrashort DJ-UBS Crude Oil (SCO). Considering the prolonged political drama with Iran, you have to realize that this is an instrument that can hurt. It wouldn't be out of the question to take home a position smiling, then wake up the next morning down 5% or 6%, so be forewarned. Size properly if you want to trade this on a swing-trading basis....320 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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