Today, the United States Oil Fund (NYSEARCA:USO) rebounded higher after a sharp sell off from May 2, 2012. At that time in May, the USO was trading around the $40.00 level. This afternoon, the USO is trading higher by 0.30 cents to $31.73 a share. The daily chart of USO will usually trade inverse to the U.S. Dollar Index.
This morning, after the U.S. Labor Department announced the disappointing non-farm payroll report gold started to surge higher. The catalyst for the rise in gold is the anticipation and speculation of another quantitative easing program by the Federal Reserve. Today, the SPDR Gold Shares (NYSE:GLD) are trading higher by more than $5.00 from the pre-market low to $155.49 a share.
Once again, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by 0.60 cents to $57.13 a share. Last week, the UGA pulled back after making a new three year high at $58.88 a share. The recent pullback in the UGA also occurred as the major stock indexes sold off. This tells us that the UGA is trading inverse to the U.S. Dollar Index futures (DX-M2). This morning, the U.S.
This morning, the United States Gasoline Fund (NYSEARCA:UGA) is once again trading higher. The UGA is climbing by 0.97 cents to $58.09 a share. The move today in the UGA puts it at a new three year high. Gasoline prices at the pump have steadily increased since late December 2011. The average price of regular unleaded gasoline in the United States is now $3.89 a gallon.
Since late December 2011, the major stock indexes have surged sharply higher. While the stock market rallies and inflates higher, oil and gasoline have also been in rally mode. This morning, the United States Gasoline Fund (NYSEARCA:UGA) is trading lower by 0.15 cents to $57.59 a share.
Could High Oil Prices Could Cause A Repeat Of 2008?
In July 2008, WTI crude traded as high as $147.00 a barrel. This high price of crude at that time was straw that broke the camels back. Many traders and investors believe that the bankruptcy of Lehman Brothers was the catalyst for the 2008 stock market crash, however, the high energy prices really started that sharp decline in the economy.
How to Trade Oil ETFs When $100 Per Barrel is Reached
While the cheerleaders on the cable financial news networks are shaking their pom-poms and jumping out of their seats about the recent stock market rally oil prices have surged higher over the past month. The price of WTI crude futures (CL) has soared higher by nearly $20.00 since the October 4, 2011 low when oil was trading at $74.95 a barrel. Can the U.S.
This afternoon, the Federal Reserve released their minutes from the June meeting. Apparently, some voting members from the Federal Reserve suggested that the stock markets needed more stimulus. Well, this Fed rumor lead to a drop in the U.S. Dollar and spike in the major stock market indexes. Obviously, the leading commodity stocks surged higher as soon as the U.S. Dollar Index declined.
HERO long: bollinger band squeeze and relative strenght for this oil stock
HERO: untouched by the oil drop, impressive relative strenght. Forming a bollinger squeeze, and it's pushing against an important resistence line. Volume is very healthy.
Buying on a breakout above resistence.
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