Thursday, July 14, 2011

$SCO - Short Crude Oil

A sharp spike in the dollar today helped lower oil prices so I am short crude oil right now. Oil is traded in dollars. The more the dollar is worth, the less dollars it takes to buy a barrel of oil, thus the price of oil goes down.

Dollar Charts
5 minute chart

Daily chart - Note the support and resistance

$SCO Ultra short oil ETF, bounced off support today with the spike in the dollar.

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