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After oil’s big run, it might soon be time to bet on a decline in prices
Oil prices have been on a tear since early December. West Texas intermediate (WTI) crude rose from about $56 to around $65, a 16% gain, and it took only a little over a month to happen. In our oil-trading strategy, we trade UCO, -0.65% and SCO, +0.69% and the performance of UCO was about double that of WTI during that time frame. We were not in UCO the whole time. In fact, based on technical charts, the runup in oil prices may very well reverse itself. Remember, oil traders are short-term traders, and they respect technical indicators as a result. That’s why oil-trading strategies often rely solely on technical ... (full story)