Safe to Long Crude Oil? Check the USO (United States Oil Fund) Chart

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Crude oil has reached 5 years low. Base on USO  (United States Oil Fund) chart, the support is at about $29. There is a trading range of $10 ($29 to $39) base on the chart. Risk vs Rewards looks very attractive to long USO at current level.

USO Nov7-2014

Original Post by Marubozu My Stocks Investing Journey

Continue ReadingSafe to Long Crude Oil? Check the USO (United States Oil Fund) Chart

Boeing (BA): Descending Triangle

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Boeing has been trading within a Descending Triangle consolidation mode for many months. This chart pattern is not for investor (cannot make money from buy low sell high strategy) because the stock price is moving side way.

However this chart pattern is very good for Option traders and range trader (using CFD) for short term trading.

BA Nov6-2014

Option Strategy

  • Short Vertical Call Spread near Resistance – Bearish Direction
  • Short Vertical Put Spread near Support ($119 has been a reliable support, also the 38.2% Fibonacci Retracement Level) – Bullish Direction
  • Short Iron Condor between $117 and $131 – Non Directional & Premium Collection
  • If $119 support is broken, Long Put if Vega is low.

Range Trading using CFD Strategy

  • Short at Resistance (Declining Trend Line) 
  • Long at Support (at about $119)
  • About $10 range

Original Post by Marubozu My Stocks Investing Journey

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Honeywell (HON): Shorting Opportunity!

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Honeywell is currently trading within the range between $90 and $98. HON is facing the Rectangle resistance with a Hanging Man.

HON Nov6-2014

A few ways to short sell US stocks:

  • Long Put Option – Almost unlimited profit (when stock price reaches zero) with maximum loss defined but time sensitive.
  • Short using CFD (Contract for Difference) – Almost unlimited profit (when stock price reaches zero) but unlimited losses also (when the stock price goes up to infinity theoretically)
  • Short Vertical Call Spread – Limited Profit Limited Loss.

Note: When the stock market is at the high (especially now at historical high), it is essential for everyone to learn how to short sell safely. Short selling is a very important skill for a trader and investor (to hedge the portfolio which already making money).

Original Post by Marubozu My Stocks Investing Journey

Continue ReadingHoneywell (HON): Shorting Opportunity!