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XOP GUSH Trade Setup

A break below this 60-minute uptrend line will likely trigger a move down to at least the 32.30 level. XOP (SPDR S&P Oil & Gas Explorations & Production ETF) will trigger a short entry on any move below yesterday's low of 35.76. Exact targets & suggested stops to follow asap. My preferred proxy for this trade is to short GUSH (3x bullihs Oil & Gas E&P etf), making the appropriate adjustment to my position size to account for the 3x leverage. However, as I am aware that many traders do not have access to short many of the 3x ETF's, I will keep this simply & list XOP as the official trade idea (covering my GUSH short position, which I actually shorted yesterday but will add to on a breakdown today) based on the XOP targets.

edit 10:05am EST: Right around the time I had finished & submitted this post, XOP traded below 35.76 very briefly & is now backtesting the uptrend line at 35.93 as I type. As such, XOP/GUSH is now an Active Short Trade as well as a Short Trade Setup. One could either short here at a slightly more favorable price or wait for another move below today's low of 35.63 (a higher probability of success on the trade albeit slightly less favorable entry.)

XOP 60-minute April 29th

XOP 60-minute April 29th

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Apr 29, 2016 10:04am|Categories: Completed Trades - Short|Tags: , |6 Comments

6 Comments

  1. alphahunt April 29, 2016 11:06 am at 11:06 am

    Use DRIP (Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares) for folks who dont have a margin account. Low liquidity but dont think it will be an issue for most folks here.

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  2. jackduffy11 April 29, 2016 11:07 am at 11:07 am

    Is there inverse etf for XOP ?

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    • rsotc April 29, 2016 3:42 pm at 3:42 pm

      jack- Here are the leveraged ETFs for the Oil & Gas Exploration & Production Sector. Not sure if there is a 1x (non-leveraged) short etf:

      UOP: 2x bullish/long
      SOP: 2x bearish/short
      GUSH: 3x bullish/long
      DRIP: 3x bearish/short

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  3. GetItRiight April 29, 2016 3:48 pm at 3:48 pm

    What’s the suggested stop on this? It looks like for the end of day, it wanted to retest the trendline again.

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  4. Teeps01 May 3, 2016 10:28 am at 10:28 am

    Hi Randy

    Nice gap down on XOP today. If we were to reach 32.30 in the coming days, based on your experience, would we bounce there & if so do you have any bounce targets in mind?

    Thanks

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    • rsotc May 3, 2016 11:04 am at 11:04 am

      @Teeps01 – Yes, my preferred swing target for the GUSH short is the 31.70 support level on XOP (covering GUSH when XOP is slightly above that support level).

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