Oil Slicks and Prudhoe Bay
My stop loss got triggered yesterday on Celgene for a six percent loss. From a day chart Celgene looks like a buy, but from a long term chart it is very extended and could fall a very long waysThe other chart here is United States Oil Fund LP (Ticker: USO). I previously owned oil and was taken out of the trade with a stop loss. I know they gun for those stop losses, but it's all about insurance and keeping losses small. As often happens, the stock price dipped to my stop loss price then resumed the uptrend. What are you supposed to do when that happens? If the trade still makes sense, get back it.
posted by Greg @ 6:50 AM
1 comments
1 Comments:
That is interesting that they "gun for those stop losses." I am not knowledgable about these things, but I would think that with all that is going on in the middle east, that oil will have to go up. War with Iran is in the planning stages, so that will really affect oil. So, my advice here is to buy the oil stock without a stop loss. And, hang on to it. Just kidding. Don't listen to me. Greg, have you ever read or heard of the Early Warning Report by Richard Maybury? He said this in 1996: "The most important person in your financial life is a man the US press rarely says anything about. He is Osama bin Laden.... he could have more influence on your investment portfolio than any other individual in the world. Stay tuned." October 1996 Early Warning Report. If interested, the address is: http://www.chaostan.com/
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