Comments on: Shorting DWTI (3x bearish crude ETF)

By: rsotc

rsotc — Tue, 19 Jan 2016 15:55:05 +0000

@charlie Yes, I do think the USO long/DWTI short still looks ok for now but once again, the most recent breakout failed to gain any traction/follow-thru so far. I'll post a few charts along with the suggested stops shortly.

By: charlie

charlie — Sat, 16 Jan 2016 21:15:10 +0000

In reply to rsotc. Randy,do you also reckon that the USO long trade ( DWTI short ) is still barely okay? The USO close on Friday ( 8.79 ) on the hourly chart seems to have settled on the top line of the descending wedge - for a technically intense backkiss !

By: SmartPivots

SmartPivots — Fri, 15 Jan 2016 15:31:11 +0000

I am currently trying to get approved for a larger margin account to short DWTI after wave 5 looks complete. I am currently long UWTI for a wave 4 correction to 38/39 crude handle. I posted my idea last Thursday. Oil is the most speculative, political, and emotional trade out there. Shorting equity indexes off resistance is where one should have a majority of their portfolio focused at this time, in my opinion. If you cannot short, going long VIX from an ETF listed in the ETF center would work nicely also.

By: rsotc

rsotc — Thu, 14 Jan 2016 22:22:53 +0000

In reply to GetItRiight. GIR- The price targets of the DWTI short or a UWTI long would correlate to those price targets (green levels) shown on the USO 60-minute chart from this post, although those are the actual resistance levels (I normally set the price targets on longs slightly below the actual resistance levels). I use the 1x (non-leveraged) ETF charts when trading the 3x because the decay can be so bad on some, especially if you go back more than just a couple of weeks, that the 3x etf charts usually give a distorted, inaccurate representation of where the key horizontal support, resistance & trendline levels are.With that being said, I will post some updates on this crude long trade, especially if/as we start to approach those target levels. G-luck on the trade.

By: GetItRiight

GetItRiight — Thu, 14 Jan 2016 21:15:20 +0000

Randy, what are your stops and price targets for this trade? I assume you will present it on the USO chart, as some of us are unable to short, so DWTI price targets wouldn’t help.
I am long UWTI myself.

By: rsotc

rsotc — Thu, 14 Jan 2016 17:25:32 +0000

Yes, thank you! The “Bullish” 3x ETF part was a typo. I shorted (and added as an official short trade idea) DWTI but should have stated that it was the 3x BEARISH ETF, which gives me a net long exposure by shorting it. Although it might only be a quick trade lasting a few days, I remain open to the possibility that crude oil could bottom any day now & if so, what starts out as a quick counter-trend bounce trade (like this one) has the potential to morph into a longer-term trade that could last for weeks, months & possibly even years.
Sorry for the confusion & thanks for pointing out the typo. I will correct it asap.

By: jegersmart

jegersmart — Thu, 14 Jan 2016 16:15:00 +0000

Am a bit confused as to whether you are going long or short, as the graph shows long targets but the title suggests DWTI is *bullish* Crude? I presume that should read “inverse” or “bear”. Either way, the techincal set up seems valid to me however I would be very careful with crude longs. There was an operational draw at Cushing today – but no more, I suspect that this rally may be shortlived. My target over the next few months is around $25 WTI, mainly because it may take this long to fill up Gulf Coast storage, and the rest of the world is pretty full so should result in a “washout”……after that though, mucho long exposure:) all imho ofc, good luck!

By: GetItRiight

GetItRiight — Thu, 14 Jan 2016 15:53:58 +0000

Can we consider the equivalent targets the ones in the CL chart from the trading room?