Thursday, April 9, 2009

Exiting DXO


DXO is trading favorite of mine (2X Crude Oil). Today we made a dogi (usually a sign of a trend change) and hit up against this 3.2 area which has been a resistance area. Volume continues to decrease, and RSI is decreasing -- which is very bearish.
Bottom line -- I took some OIH out, I'm out of DXO in most accounts, and intend to liquidate in my others. I will buy DXO when it gets to ~ 2.6, as I think we will break this uptrend trend line but find support at the 50 day.

1 comment:

  1. Plus USO and DXO volume has disappeared.

    DXO still has not close above where I sold it.

    I think the oil bulls are having trouble here, you would think with the market up so much oil would have broken out but it did not.

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