Took a couple of trades in USO and QLD today. USO was a scalp short, QLD was a counter-trend trade and I missed the money move down b/c of distractions.
Anyway, I was looking at DIG today; Ultra Oil & Gas ProShares. Looking at USO, as a proxy for Oil, it looks to have found solid support at it's 200 Moving Average. With that bullish affirmation in USO, looking at DIG (ProShares Ultra Oil & Gas) we see a momentum divergence taking shape, with a small bullish flag leading the initial move up and out of resistance (the $83 level). We could possibly anticipate a move up to test the first level of overhead resistance at the 50-EMA (or $92.60-ish). One might also take a look at some of the issues held in DIG (including OXY, SLB, XOM). With that being said of Oil's potential move up from here, check out Corey's post over at AfraidtoTrade for his analysis at the Dow and the recent non-confirmation rally we've had.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.