Power Trading Blog

I have received many questions regarding the sharp decline in Oil prices over the last week. A radio show listener asked me if there was an ETF to trade Oil, and I found several that were appealing including UUP and USO.
In my class this morning, one of my students asked me what I thought of USO at current levels, so we pulled it up and took a look.
I noticed the sharp decline into a pretty solid demand zone, and on the 15 min break we had in class, I ran out and went long at $36.93.
While I do think that prices might seek out the lower demand zone, I couldn’t resist starting to build a position based off my risk management plan. I am presently long at $39.63, and thought I might map out a trade for those who might want to add oil to their portfolio after the sharp recent decline.
Here is how the trade sets up:

Long above $37.19
Stop $36.45
Target $39.86

For years now I have waved a giant flag of discontent with the blatant thievery perpetrated by the giant wall street firms and crooked politicians.  Their actions clearly exemplify outlandish greed and disregard for America as a whole. Firms like Goldman Sachs, Lehman Brothers, Bank of America, Citigroup, and countless others settle lawsuits with the SEC for BILLIONS of dollars on a regular basis for robbing Americans, yet they pay these fines with the conditions that they admit no guilt. Wouldn’t it be nice if we could do this as ordinary citizens?
One cannot help but wonder if the Securities Exchange Committee, is doing any good at all, or if they are in the pocket of the big firms and politicians themselves.
Last Sunday, 60 minutes did a special on Lehman Brothers, in which it questioned why the SEC had not arrested ANYONE in connection with the Massive fraud they pulled over on America. The Lehman Brothers bankruptcy is the largest in history, bigger than General Motors, Washington Mutual, Worldcom and Enron combined!
The Federal Bankruptcy court appointed Anton R. Valukas, a prominent Chicago lawyer to investigate what actually happened. He issued a report that clearly showed criminal activity at Lehman, and implicated several prominent leaders. Two years after the report, nobody has been arrested, nobody has gone to jail. Even worse, it came out in the reports that the SEC was working at Lehman for months before the crash and would have been clearly knowledgeable of the impending meltdown, yet did NOTHING to protect Americans.
I urge you to watch this video, write your congressman and demand action!
These crimes and destruction of our financial system can not be tolerated.
In Iceland, they had a similar situation, and the people revolted! Since then, Iceland has put MANY bankers and politicians in jail for their crimes, and implemented a new constitution. If we ever truly want to get back to the America which stood for Freedom, Prosperity, Justice and Liberty, we must make some changes soon.
Please watch this 60 minute video (its only 13 min) and share with as many people as you can!
http://www.cbsnews.com/video/watch/?id=7406224n
Cheers,
Merlin