$100 Barrel Oil Pounds Stocks (USO, REXX, UCO)
| Ticker | Position |
Sell Date |
Return |
| BORN | Long | 2/3 | +16.5% |
| ALJ | Long | 2/14 | +49.8% |
| CCME | Long | 1/17 | +17.4% |
| HILL | Long | 1/31 | +55.5% |
| GCI | Long | 1/10 | +17.6% |
In the weekend video we highlighted both the Russell and Nasdaq. In the Nasdaq the first area of support is 2700, but the target on a pull back is 2590. A strong bear would take out 2700 this week.
In the Russell we need to see buyers come in above 780. This index, by far, has the most to lose. The next area of support (should 780 drop) is 725, or a full 10% decline. Important development for this index, it lost RSI 50.
In the SPX, nearest support is 1301. I think SPX will see a break down of 1301 and eventually target a stronger area of support near 1280. Unlike most of the indices, SPX has successfully built numerous support levels on its climb higher from 1050. Sellers must test 1280 this week or we can expect a snap back rally to 1320.
$100 per barrel
That's the new price for oil. Heading into the week, we knew oil would have a dominant role, and it has. Tensions in the Middle East and supply shut downs in Libya have taken oil past $100 over the last couple days. Oil has not been this high since 2008. And our one oil holding REXX is enjoying the run. If you prefer more direct exposure to crude, consider United States Oil (NYSE: USO) and the ProShares Ultra Crude Oil (NYSE: UCO) for long ideas.
Higher oil prices have wreaked havoc in the equity market. While this pull back happened quickly it by no means threatens our long positions. We have two bearish positions in place to profit from the downside and increased stops on longs to protect the gains. Additionally, the portfolio added to its longs yesterday since the bulls should not be disparaged.
There will be a webinar coming up next week that is free to all Market Forecast readers. While the topics will be diverse, I will discuss the recent movement of both oil and gold. If you would like to sign up for your free pass to the webinar CLICK.
The indices in Europe and Asia were mostly lower today, but the dollar is trading much lower as well. Odds favor the bulls will defend support today - and for the first time in seven months they need to.
Watch List
The TradeMaster Daily Stock Alerts watch list is bullish again - but only selectively. For a full list of our trades and video of our current stock watch list CLICK.
