A Common Trading Pitfall

Posted by Joe Duffy | May 15, 2025 | Joe Duffy's Trading Advantage | 0 |

I have recently been favoring the long side since the lows, but not too involved through the earnings season. Did very well on the decline. Trying not to rush in afterwards. Usually as traders our biggest drawdowns occur after our biggest wins, so cognizant of that.

One market I am looking at more closely here is Crude Oil, and oil stocks. The attached chart of Crude shows a very big level that goes all the way back to 2022. That is around the $65- $66 mark in the front month Crude.

The Crude market broke through that level in April with violence drooping $17 in 6 days. It bottomed and made a successful bottom test in May. If it can gather some energy by moving sideways, there is a good chance to regain that $65 -$66. If it does that we will likely see a significant rally. Not doing anything yet, but this market is top of my watch list.

Thanks,

Joe

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Joe Duffy

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