Wednesday, May 19, 2010

USO trade

We wrote several times over the last few days (including our last post) that we were interested in buying USO in the 32 zone (or crude around 67-68).  We got our trade today -- not as profitable as we had hoped but this market is having a hard time bouncing.

We first bought USO on the inventory reversal, sold only a 1/4 for 1%, sold a bit more for meagre profits and got stopped break-even on the move back down  Meh.   The second set of trades though was much better. We wanted USO closer to 32 but decided to go in on the reversal (32.77 entry with 32.67 stop) as SPY bounced on the 200SMA.   We got off some very good exits, the bulk of it for over 2.2% profit  (decent size/trade since stop was only a dime on  a liquid stock).     

All posted real-time on StockTwits