Taking some more profits - OIH 7/21/11

Taking some more profits - on oil this time. Last time it was on currency, the Swiss Franc. Selling my position on OIH based on a short term signal using a limit order for tomorrow. If the order takes during the day, fine. If not then we will see next day. I am certainly not going to be looking at it till I get back home from work. Today I got back late, around 8 PM. Better to sell with some steam behind it. See my short term down signal on the chart below.

The chart shows a major signal that is UP and a minor signal that is down. I buy in the direction of the major signal (UP) using the minor signals for more precise entry and for higher percentage wins. The minor signal shows down. That does not mean it has lost steam. Just that I bought on a dip and now it is time to take money off the table.

The idea is to pay for the high price of oil using profits from buying and selling OIH - oil ETF...not really. Just joking there, tongue in cheek. I am running this off my R/IRA funds that are in a brokerage house that I trade using end-of-day signals and I am following the trading plan I outlined for managing my retirement portfolio. OIH is in my commodity section. It is not truly an anti-stock fund as it tends to rise with the market. But still, I consider Gold, Oil and Water as commodities and they can run counter-trend to the market.


See my chart on OIH below (done with Metastock software as all my charts are).