Thursday, August 23, 2012

Oil Trade 22.08.2012


Market Sentiment

The market is bullish despite with the recent 0.5% decreased on Tuesday. According to the news and blogs, the hype is because of the expectation of the market for central banks to "print out  money". With an increase of money supply, the long lending rate decreases. This will hope to spur spending and economy  may seem to improve. With this hope, markets rally around the world. Will this hope turn into reality? This will an interesting play to watch.

Strategy

Oil - I will keep my Oil ETF positions.

Long Oil
Entry: 96.52
Exit: ??
Stop loss: 95.52
Position Size: 0.5
Reason: there should be a upward pressure when it touches 200SMA.


Result:
It is unfortunate, I got stopped out as the market whipsawed. I will have to widen the stop loss from 100 pts to 150 pts.

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