Late Wednesday evening, I had put up a post on why I thought oil was due a pullback. I thought it was a pretty ballsy call as oil was in a nice uptrend back then. I had also pointed out 40.5 as the important level for oil. Check out the above linked post if you haven't done so already for a textbook case of negative MACD divergence.
Well, this morning, oil did make a high of 40.44 in the pre-market but it reversed from there closing at 39.35 in the after hours.
I had tried to put my money where my mouth is by taking a position in DUG on Wednesday itself. My understanding was that it was an ETF that was double short oil but it turned out to be double short an index that tracks oil companies etc. and I got stopped out of it yesterday itself. Oh well...never going to use DUG to short oil in the future. It is disappointing to get a play so right and still not be able to make any profit off it. Hopefully, some of you readers played it much better than I did and were able to profit from the down move.
I will be back this weekend with the weekly trading results, a watchlist for next week and my thoughts on what to expect next week.
Enjoy the weekend! It's gonna be full of rain and more rain where I am.
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