We went back to the well (pun totally intended) today and it didn’t disappoint. That USO call we pointed out jumped from about $7.75 to as high as $10.40 during the session. Talk about a quick grab. Now the next question is what to do with it.
USO pierced a couple key resistance points and it is quite possible the sky is the limit for this gusher. But there is still the risk that headlines start to appear offering some attempt to cool these rising oil prices. Valid or not it could give traders enough pause to create a pull back in USO. Let’s look at the chart and see what makes the most sense:
Oh. and let’s look at 3 other picks that helped us out today.
Adding Bollinger Bands to the chart helps us see that it is worth holding on through the close today and seeing what it does tomorrow. Whenever USO hugs that top band, it tends to keep climbing until it pops above it. We haven’t broken through today so this is a hold. If that is not in your risk tolerance, lock in that quick profit and put it in the bank.
We also had some good news on the SQQQ trade we spotted. It moved up closer to 4 from 3.5 and with treasury yields super high, all signs pointing to a rate hike and momentum already started to the downside, that should grow nicely.
The CRWD trade moved up to 16 from just under 15 and also looks to extend.
Keep an eye on your inbox and we will update through the week.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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