Thursday night thoughts

Yesterday we wrote if there were any intelligent forward looking individuals they would short the financials. let me know if any of you did (you would of done extremely well today!). Moving on...this market looks HORRIBLE (in other words - most likely set up for a positive bounce). Any chart you look at is BRUTAL. So in the interest of all contrarians, I offer you:

DXO



















This ETF represents ultra (2x) oil future contracts and is known for severe volatility and volume. The chart highlights another symmetrical triangle like the one we just had with Netflix (NFLX that broke out perfectly and hit the price target (and more). If we see a break to the upside then we could see $6. The only negative is this pattern is in a downtrend and probabilities say the next move most likely is down. We will buy a small position tomorrow at the open and if we see a breakout on volume we will add more.


Trade well,
Trader D