Oil will have good support at $75. Nothing goes down forever nor go up forever. Oil has gotten oversold last week. Expecting a good size of technical rebound.
I like buying UCO at this $75.05 - $75.50 level, which is kind of in-line with this chart that I had posted in another thread: http://www.flickr.com/photos/ac26xp/4885389531/sizes/l/in/photostream/
But it will be on a short leash until we are firmly off that bottom support line.
With all everyone and their brother hinting a long-term slow-down in the global economy, a fall below that trend wouldn't surprise me.
I have a feeling we will see sub-$75.50 oil at the open tomorrow, but it should start to rise quickly (with the equities) leading up to the EIA report.
If futures are red and oil is red at start, then we play wait and see... and holding on to Kevin's cash seems the prudent action.
Nonetheless, I have fibbo-calculated buy orders at $9.32 and $9.18 (depending on which short or medium cycle you calculated your fibbos).
And then, of course, the EIA report at 10:30am.
* U.S. crude stocks fell 1.1 million barrels, gasoline supplies dipped 200,000 barrels and distillate inventories gained 1.3 million barrels, a preliminary Reuters poll ahead of weekly inventory reports showed Monday.
So, we shall see how the markets digest those numbers, if it all.
Other than Deere and The Limited (niether in a major index), nobody significant is reporting earnings tomorrow (unless I just missed seeing a big name).
IMHO, it all depends on where we open tomorrow morning.
However, short term sentiment seems to be positive, in lieu of "slowing economic growth".
Oh, I have a sneaking suspicion crude will see $75.50 (or lower) again before she sees $77.
Also wouldn't be surprised to see more selling than buying in the final 2 hours of trading.
Major markets still close green, though.
All IMHO... We shall see...
Fund managers make big bets on oil stocks:
Yep, I do not doubt that oil will climb it's way back into the high-$80s, possibly $90+.
However, UCO/SCO is a trading vehicle, and shouldn't be used for long haul investing.
Depending on how Wednesday's EIA report goes, I may start buying UCO... or re-buy SCO.
We shall see.
I agree with you feedback. Although with the oil oversold last week, I expect UCO to have a technical rebound back over $9.50 tomorrow. I would not be surprised to see it over $10 before September. Thanks a lot of sharing your opinions with me. Wish you a very successful trading day tomorrow.