Thought to do some charts on oil today as it broke over that key $110 level and what oil ETF's I've traded in the past.
I get this question a lot "what oil ETF are good to trade if you think oil will go up or down? I've traded Horizon Beta ETFs HOU.to & HOD.to as well as Proshares Ultra $UCO & $SCO which provide approx. the same percentage moves although the prices are much different. What I like about UCO & SCO are the ability to trade them in premarket or afterhours which you don't have that on HOU.to and HOD.to ( also known as HOU-tc or HOD-tc which trade on the Toronto Stock exchange).
I've had great success playing HOD.to HOu.to ( canadian oil 2x bear & bull ETFs) This time on this last oil spike played $SCO bear ETF since i thought we were topping into $108+ oil last Friday-Tuesday -You can see the top on the charts below – I've posted charts below on $CL_F ( oil futures ) or also known as $CLK1 which is the May 2011 futures price – sometimes you will also see it as CLK11.nym on yahoo finance — The June 2011 oil futues are CLM1 , July CLN1 , Aug CLQ1 , Sept CLU1 etc. etc.
I did 6 charts below the 1st 2 charts show the price of oil today on a 5min chart as well as on a daily chart so you can see the trend.
The following 2 charts show some 2x ETF's for oil that are the Bear ones ( so when you think oil will drop back these are the one)
The last 2 charts show 2 x Oil Bull ETFs ( so when you think oil will go up as it did today you can play either HOU.to or UCO) – another ETF bull is USO but doesn't move as fast as these 2x ones so if you prefer safer slower moves then USO is the one for you. I know some traders that trade the underlying options on USO to get a bigger percentage move. (calls & or puts)
Reminder: double click on the charts to make them bigger or right click and open them in another window or tab
Hope you found these ETFs & charts helpful