Superior Profit
Oil false downside breakout.

CHK Headwind long trade setup.

As of 1 PM EST, oil futures (CL) regained the Memory trendline support in both weekly and daily charts, creating a false downside breakout. CL is up 7%+ as of now. CL has displayed bullish CUE Headwind possible reversal signal in the weekly chart (note that the week is not complete yet - you may see if this signal is confirmed by the end of the week).


USO has also displayed the bullish Headwind in the weekly chart (weekly candle is not complete yet). USO is yet to regain the weekly Memory support level.

CHK, an Energy sector stock is up by more than 19%, and it has displayed a bullish Headwind in the daily chart.

Would you consider buying Oil/USO or the stock CHK? There may be other Energy stocks worth consideration - which are value stocks moving up today.

You may find them easily from CUE Technical Trading System Scans or CUE Edge industry rotation analyst.

chk chart 2018-12-26_13-02-39.jpg  chk industry 2018-12-26_13-18-36.jpg  CHK sector 2018-12-26_13-16-56.jpg  chk vital 2018-12-26_13-18-05.jpg  CL chart 2018-12-26_12-58-12.jpg  USO chart 2018-12-26_12-58-51.jpg 
0 0
Superior Profit
I had taken a synthetic long position in USO. This included Long 10 Call and Short 10 Put (Jan 18th expiry). Today, as USO hit the 10 strikes, I booked profit. The combo was established 

It gave me a high-profit %. Using the ETF, USO, the profit would be much lower.

The Short Put 10 / Long Call 10 strike (18th Jan expiry) was established for 0.41 credit. Today, I closed my partial position at 0.12 debit.

The protective Put was at strike 8. That had little value left and I did not close that. Who knows! If USO reverses!

Here is the original snapshot of USO synthetic that was initiated when the original post was shared on 26th Dec.

[unknown]
0 0
Superior Profit
Follow up on CHK.

I had taken a long on CHK at around 2 dollars when I shared the original post, based on the bullish headwind. Ad the USA market is volatile and global markets declined, I decided to exit the CHK position also with profit (about 9%) profit. 

CHK Exit chart 2019-01-02_12-31-48.jpg 
0 0
Superior Profit
CHK hit profit target by 9th Jan 2019. At least partial profit would be booked if one held on to the trade following standard CUE trading technique.

As of Fri 11th Jan, the industry was decelerating fast and one might consider booking full profit. One could also continue to use trailing stop in a way that the entire trade is risk free from 11th Jan onward. Or, one could book full profit in the stock position and use part of the profit to buy a Call option to try to let profit run.


chk edge 2019-01-14_7-16-34.jpg  CHK update 2019-01-14_7-12-19.jpg 
0 0