Previous market update here
Before the market update, based on the question from a reader, we have a post for crude oil. Chart below.
If you already are short, right now it is hold. Close the short position on a close above /CL = $43.
If you have no position, then open a long position when the /CL bounces in the rectangle.
What instrument do you use to trade crude oil? ETFs are the way to go. Unfortunately, there is no "best" ETF as a direct play to crude oil. See chart below, while crude oil is down 54% YoY, other ETFs are down much more. USO is an ETF, OIL is an ETN; UCO and UWTI are leveraged plays for /CL. The best of the worst is USO though.
Now, let us discuss the market update. We flipped the sell to a buy on ST and the market went down 0.8% on the reading. Yesterday was a FOMC day. Nothing significant comes out of FOMC on most days, except once in a while. Yet the market swings a lot. That is never our problem, anyways. We have our own instruments, our own indicators to tackle all that noise.
No change in market update, we have a 2% stop on the ST.