Wednesday, April 21, 2010
Itz Pix Portfolio Update: SCO
Itz Pix portfolio suggests adding the ProShares UltraShort Crude Oil ETF (SCO) @ $12 as posted yesterday. Oil prices declined Wednesday after U.S. government data showed an unexpected increase in crude inventories and fuel stocks. Crude oil inventories in the United States, the world’s largest oil consumer, rose 1.9 million barrels last week, against the forecast for a slight drop, the Energy Information Administration (EIA) oil inventory data showed.
The Canadian dollar is in the news this week as Canada is set to a possible rate hike >>READ. Events this week will move the Loonie.
Below is a daily chart of both the Canadia Dollar and crude oil, very similar in charts. Should the Canadian dollar rally, it may send crude to $90, resistance $87. Itz opinion is that oil is set to decline to the mid $70's and has suggested hedging the energy positions in the Itz Pix portfolio (RIG, PDE, SU, PWE & PGH) via the ProShares ETF. Note this is a trade and a hedge to current long energy positions.