Oil Ready To Fall?

It is looking like the oil etf USO might be headed down to the $30 level. There are a few reasons for this dip.

- Looking at the 5 year chart, there looks to be some seasonal selling in the summer months. Last year, there was a dip to $29.00.

- A daily downward channel has been established with lower highs and lower lows.

- Inventories are at their highest in years.

The thought is that the ETF will end up hitting the $30 level in the next 6 weeks. The June $34.00 puts look like a possible trade.

***Disclaimer - This is just speculation and opinion. Do your DD before trading!***

New Put Trade in SPY

The May $157 put options on SPY have been purchased earlier this morning for $1.05. Stop loss price is set. Goal for put is $3.00. Reasons for the purchase are:

- Chart top forming

- ADP numbers were not good

- Commodity selling before a FOMC (Federal Reserve) meeting

- Overall market negative sentiment growing

- Month of May is upon us

***Disclaimer - This is just speculation and not to be considered a recommendation to buy or sell anything. ***