100% Gain in 24 Hours
by Mike Paulenoff
April 8, 2016 • 1:00 AM EDT
On Monday April 4, Mike noted in the room that the US Oil Fund ETF (USO) should hold key support at 9.25-9.00 given that its larger pattern represents an incomplete medium term recovery rally arguing for another up-leg towards 12.
On Tuesday, he got into the USO Apr. 8th 9.00 Calls at 27 cents, looking to take advantage of a technical bounce in the USO in reaction to Wednesday's EIA Oil Inventory Report.
Sure enough, the USO bottomed right at 8.99 on Tuesday, reaching above 10 intraday on Friday. Although Thursday's EIA Report would subsequently show a neutral/bearish weekly build in oil supplies, Mike's interpretation of the promising technical set up earlier in the week anticipated strong price action into, and a positive reaction after, the release of the data.
Mike exited the calls on Wednesday at 55 cents, for a 100% gain in 24 hours.
The USO trade was one of several strong trades for Mike since the start of the month. He exited the Silver Wheaton (SLW) puts on April 1 for a +200% gain in 1 day, and the SPDR S&P Biotech ETF (XBI) on April 6 for a gain of 10% in 2 weeks, displaying trading accuracy across a number of markets: Oil, Metals and Biotech.
Plus, Mike exited his Visa (V) and Raytheon Company (RTN) trades this week for 2% nominal gains, with only Nike (NKE) incurring a nominal loss after a 3.8% gain from a prior long position from March 14-18.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
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More Top Calls From Mike
One week ago, on Monday morning November 15, Mike Paulenoff posted the following alert for MPTrader members about HD (Home Depot):
"My attached Big Picture Daily Chart shows that all of the action off of the 10/27/21 ATH at 375.15 into last Fri's close at 372.63 exhibits the right look of a high-level bullish Pennant or Flag formation atop the upleg that started at the 10/10 low at 324.16.
Two months ago, on the afternoon of September 13, Mike Paulenoff brought to the attention of MPTrader members the intriguing and potentially opportunistic technical setup exhibited by the XOP -- the SPDR Oil and Gas Production and Exploration ETF.
Early on October 15, when CVS Health Corporation (CVS) was trading at 85.92, Mike Paulenoff highlighted upside opportunity for MPTrader members, writing:
"For the past 5 months, CVS has gone pretty much nowhere after hitting a new 6 year high at 90.61 on 5/25/21. It is precisely because CVS has traversed a sideways price path since late May that makes my work interpret the CVS technical setup as extremely promising for a run above 90.61 towards 100, and possibly 108-110 in the upcoming weeks and months.
On the morning of October 14, Mike Paulenoff posted the following time-sensitive comment about CHWY (Chewy Inc) to MPTader members:
"CHWY has the right look of a very mature correction from its ATH at 120 (2/16/21) to Monday's (10/12/21) low at 60.45, which represents a 50% haircut from the ATH. As of this moment, with CHWY trading at 62.72, my work does NOT yet have confirmation that THE LOW has been established.
In his September 30th chart analysis for MPTrader members, Mike Paulenoff wrote bullishly about AMD, noting:
"AMD has piqued my interest technically because all of the price action off of its ATH at 122.38 (8/04) into the September lows at 99.51 (9/20) and 99.81 (9/29) has the right look of a complete, or nearly-completed correction of the prior major advance off of the 5/13 low at 72.50. As long as the 99.
