USO
This trade is very aggressive and NOT for everyone but if you’re feeling fat and sassy, we need to add another layer. We got our first USO trade around $82.00 and that was oil around $115.00. We got our second trade around $73.00 and that was oil around $101.00. We now have oil trading around $108.00 and USO around $78.00 so I want to fill in the gap that was created when we stood aside and let oil do its full drop.
This is aggressive as hell for what I call a pocket trade. My opinion is changing and I see oil possibly going to $150. The fucking idiots are not making the moves to ensure supplies. They are so in love with their sanctions that they’re sanctioning themselves by stopping gas and oil flows to Europe. The greenie weenies that are running the White House are still in love with their wind farms and solar panels and are unwilling to unleash the mighty U.S. oil industry. That might have to wait until the Republicans come to town after the midterm elections.
There is going to have to be a lot more pain before they give up the tree hugger fantasy of clean energy now. It might take oil above $150 a barrel to knock some sense into them.
So my specific recommendation is to BUY another 475 shares of the USO. Adjust this trade to your account size and risk tolerance but for me, I am convinced that oil has got more room to run on the upside.
Warning: This is a very volatile, shit market and anything can happen.