Thursday Foolishness: More Of The Same With One Trade (USO, UUP, DIA, TLT)

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Our day is done, how’s yours?

Phil Davis: That’s right, we already did our 3am trade where we caught the dead top of oil (NYSEARCA:USO) (and the dead bottom of the Dollar), where my 2:59 am comment to Members in Chat was:

Dollar (NYSEARCA:UUP) at session low of 80.40 at 3am and oil back at yesterday’s high at $103.70 so oil (NYSEARCA:USO) (/CL) makes a nice short below $103.75 here but DANGEROUS pre-market trading as Iran could spout off at any moment and the trading is VERY THIN.

So that brings us back to the good old Dow (NYSEARCA:DIA) (/YM) futures at 12,350 and they are just over that line at 12,351 but that’s the short of the moment as long as the Dollar is over 80.40 .

For the next hour, I did a blow by blow on the oil (NYSEARCA:USO) trade in Member Chat on the way down to $102.70 – a nice $1,000 per contract worm gotten by the early birds, where we took the money and ran ahead of likely morning manipulation back up to $103.50, where we can short it again on inventories (11am).  The Dow (NYSEARCA:DIA) slipped to 12,300 and paid a solid $250 per contract as well, paying for over 100 Egg Mcmuffins this morning by itself.  If you want to see how we make decisions along the way down – it’s well worth going over this morning’s comments – there was also some good discussion of other topics this morning, including my pick for the best wide-screen TV.

We’re still just messing around with hit and run plays, waiting to see how the week pans out and next week we’ll be waiting to see how earnings pan out as well as what we expect will be a pretty major market pullback leading into the 10-year auctions next Wednesday at 1pm.  Clearly the Fed freaked out and jumped in yesterday when (NYSEARCA:TLT) hit $118 so we are fairly comfortable with our prediction of a…

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Posted with permission of author by Wall Street Sector Selector