When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (USO) – SELL-STOP LOSS
SELL the United States Oil Fund (USO) $2.96 or best
Closing Trade
4-21-2020
Portfolio weighting: 5%
Number of Shares = 1,250
This is clearly NOT the time to be a dilettante in the oil market. Unbelievably, the June futures lost 25% of their value at the opening this morning, the major owner of which is the (USO).
The market seems to be discounting negative oil prices for months to come as incredible as that may seem.
If you play with fire, you get burnt. Thank goodness, I limited this ‘funny money” trade to only a 5% weighting.
Live to fight another day. Don’t get discouraged. Normal trading will return soon. Trading a once-a-century event is not easy.
Here is the specific trade you need to exit this position:
Sell 1,250 X (USO) at………….………$2.96
Total proceeds: 1,250 shares X $2.96 = $3,700
Loss: $4,687.50 - $3,700 = $987.50
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
