Type to search

Options Trading Wealthpop News

Oil’s Dip Brings This Sector ETF Into Focus For Bears


– ETF Watchlist –

The market rally seems to be once again to be taking a breather. Nvidia (NVDA) after its meteoric rise has fallen back below 400 after leading much of the hype in the market over the past couple weeks. Is the rally over? Tough to say unequivocally, but there is definitely some weakness in the market as of right now. Something traders will want to be weary of, especially after the debt ceiling deal has finally been inked.

For now, we will look for the weaker sectors of the market in order to find a trade for our Smart Trades community to put on. The trade with the highest probability at the moment? Shorting the energy industry with one of our favorite oil ETFs.

VanEck Oil Services ETF (OIH)

The OIH is one of the energy sector ETFs we like to trade the most, and therefore, trade often when there is an opportunity to do so. This time, the set up comes as oil prices dip in a market that is showing weakness.

Normally the overall market and the oil industry have somewhat of an inverse correlation, however, the weakness of the energy sector is too much to ignore. After the price of oil dipped below that $70 mark, it opened up the industry to more downside.

To capitalize on that weakness, we are looking at shorting the OIH. If OIH can come up to retest 250 without breaking above it, this could be the entry traders are looking at to put on this trade. Keep this one on your watchlist as this week of trading wraps up.

Join my Smart Trades options trading service today to see exactly how my students and I trade these types of scenarios! Smart Trades is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today and as always…

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

  • 1

Leave a Comment

Your email address will not be published. Required fields are marked *


It's not goodbye, it's hello Magnifi!

You are now leaving a Magnifi Communities' website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi