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CWEI Trade Setup

CWEI (Clayton Williams Energy) will trigger a short entry on a break below 84.30 with a suggested stop on a 60-minute close above 87.42. The price targets at this time are T1 at 74.22 & T2 at 69.81 with a potential third target around the 60.70 area, depending on how the charts of both CWEI & crude oil play out going forward. The suggested beta adjustment for this trade is 0.7.

As CWEI is an oil & gas exploration company, a break below the 11.20 support level on USO will help confirm a short entry on CWEI.

USO 60-minute Oct 17th

USO 60-minute Oct 17th

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Oct 17, 2016 11:25am|Categories: Completed Trades - Short|Tags: |2 Comments

2 Comments

  1. rsotc44 October 17, 2016 12:15 pm at 12:15 pm

    Randy, I am wondering if you monitor oil, gold, natural gas, biotech along with the directions shares on a consistent basis thanks. Bibiano

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    • rsotc October 17, 2016 1:01 pm at 1:01 pm

      That’s a great question Bibiano. In fact, I’m going to add it to the FAQ page. Technically, yes, I do monitor oil, gold, nat gas, biotechs & just about every other key index, sector & commodity on a consistent basis however, I don’t always post updates on each of those on a regular basis.

      The financial markets are a compilation of US & global stocks, commodities, currencies, precious metals, etc.., all of which are inter-related to varying degrees with one particular asset class often affected by what’s occurring in another asset class (e.g- the correlation between oil or gold & the US dollar or other key currencies). While I spend the bulk of my day reviewing the charts & price action of most major stock indices, currencies, various type of bonds, commodities, etc…, I don’t always post consistent updates on all of them.

      First & foremost, there just isn’t enough time in the day to do so but more importantly, I strive to keep the analysis & trade ideas on RSOTC as streamlined and as timely as possible. If I were post regular updates on, gold, for example, there’s a good chance that my analysis on gold would become somewhat diluted. For example, the less-active swing traders & investors that might just scan the headlines of my front page posts might miss the posts where I start to highlight some key developments in the precious metals.

      As such, I might suddenly increase my analysis & posting of trade ideas on gold, silver & the miners when it appears that the sector may be about to present some lucrative trading opportunities. Likewise, once the bulk of the move that I was expecting has played out & the R/R is no longer very compelling, such as I recently posted a couple of weeks ago when I closed out the short trades on the gold & silver mining stocks (which have since grinded around in a sideways, nearly impossible to trade range, going nowhere since then), I will share my thoughts as to the fact that I either don’t have a good read on the next direction of the sector or simply don’t think the R/R is attractive to remain long or short and simply move on to the next trading opportunity that looks compelling.

      EVERY asset class, be it a stock index, sector, commodity, currency, etc… goes through periods that are very conducive to swing or trend trading as well as periods where the current or next direction is simply very unclear. including impossible to trade consolidation periods that can last for months or sometimes years. I will watch a particular sector or stock for weeks, months & even years, waiting patiently for the charts to clearly start setting up for a likely bullish or bearish trend/trading opportunity. It is not uncommon for me to post very frequent updates on a particular sector for days, weeks or months on end then relatively abruptly, after closing out all my positions once the R/R for trading that sector no longer looks compelling, I might stop posting updates until the next trading opp in that sector begins to materialize.

      With that being said, one of the benefits offered to Gold members of the site is they can request my opinion on a stock, sector, commodity, international stock index, etc… whenever they like. I’ll typically reply with my thoughts, as well as the conviction (or lack thereof) of my opinion, along with a chart(s) supporting my analysis. Such requests can be made publicly via the trading room (the preferred option as others might benefit from the discussion) or via the private messaging feature. Hope this helps & as always, I welcome feedback & suggestions to the site & will do my best to accommodate the requests from members.

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