Oil Takes a Dip

Daily Pit Stop [FSTP] [dst]( Oil Takes A Dip Hey OP Crew,  Griff here with the Chart of the Day. A wild ride for oil stocks today as the US Oil Fund ETF (Ticker: USO) went from +$1.75 on the day to -$2.5 … Notice the set-up below which shows USO bouncing off the high volume control price, which is also on top of the 200 day MA around the $70 level. [fstp] This downtrade is a great place to get in on a commodity that should resume its uptrend in the months ahead. Consider buying a Apr19/Jan19 77 strike call calendar for around $2.5 and roll the short call to a .25 delta each month and collect ~$1 of income … By April you could own the call for close to nothing with USO trading above $80 … Let’s Go!  - Bill  [Pit Profits] Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [fvix] "We Have Reached A New Low"  Has the VIX hit a floor? The index, while still closing below 13, seemed unable to drop lower…in fact at the highs of the day the VIX was not giving it up. In the end the SPX closed down 4.31 points, the VIX rallied .29 points More importantly we saw a strong increase in demand for VIX options with the VVIX rallying all the way up to 87.79. We are at a crossroads for the market, it is going to either break 4600 and take off or head right back to 4300… Here is the good news..I know exactly how to play this… [Check out what I think traders should do here….](  - Mark  [frep] ARKK Breadown Ticker of the week: ARKK Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.  The market tends to move in waves. In 2020-2021 it was all the hot stocks that might someday make a ton of money….who cares if they might go out of business. In 2022, it was energy, if the company created energy it went borderline straight up. In 2023 it has been all about the companies that make the most money…the Mag 7, which PE or not certainly make a ton of dough have been the best perfomers. With these trends there is always a fund or ETF that runs hot…in 2022 it was XLE, in 2023 it was FANG. Which leads me back to the beginning…we are seeing really bullish action out of a fund left for dead post 2020. Is this fund ready to rise like a phoenix from the fire? [Read ahead to find out…]( - Mark  [fprm] Lessons Learned From Lives Lived The world lost two icons this week – one in politics and one in finance. Seems fitting to mention given I bridge DC and Wall Street. Henry Kissinger passed away yesterday. Kissinger was a key player in foreign policy during the Nixon and Ford administration of the late 60s to mid-70s. He smoothed out the U.S.’s relationship with the Soviet Union, opened up relations with China, helped end the Vietnam war, and brought together sides in the middle east. The impacts of those moves are still being felt today. Despite his successes, his career was not without controversy. He was known to be paranoid and suspicious. Many believe that added to the paranoia that eventually became Nixon’s downfall. I’d like to believe that he taught us that even polar opposites can find common ground. We also lost Charlie Munger this week. Charlie was Warren Buffett’s right-hand man without whom Berkshire Hathaway would not be where it is today. The investing icon was known for his keen insight and pearls of wisdom about investing, such as: - “You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.” - “Spend each day trying to be a little wiser than you were when you woke up.” - “A great business at a fair price is superior to a fair business at a great price.” - “Every time you hear EBITDA, just substitute it with bullshit.” Those ideals fit well with what we are doing at OptionPit. We want to make you a little wiser ahead of the rest of the world to improve your trading. Let’s look at how some action in D.C. might impact miners trading on the Street. [Click here to read all about it.](  - Frank  [AG] Stocks don’t selloff, they rotate From the Desk of Option Pit Director of Education Andrew Giovinazzi.  For a while today the Invesco QQQ Trust (Ticker: QQQ) was down almost 1%. You name the Mag 7 stock and it was down on the day. Stocks like Boeing Corp (Ticker: BA), a stock I had in the [Easy Trade Butto]([n](, jumped to a one month high.  If the story is rotation, stocks like BA should be able to make 1 year highs this month. All of that Mag 7 money has to go somewhere and cheaper multiple names should shine. [fstp] BA 1 year chart with 1 day candles I still like SPX 4600 to close the year but it will be all the other stocks that push it there. - AG  [Glossary] There are plenty of terms in the trading world that need explaining. The Option Pit Glossary is here to help. Today's phrase is:  Commodity -  A physical asset deliverable from a futures contract regulated by the CTFC.  Commodities examples include gold, crude oil, and frozen concentrated orange juice. All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now they’re collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today. DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. 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