The Student Loan Ranger

It was a very boring day today until about 15:30. I crashed out at lunch time, and by the time I was back at the desk I had missed some good shorts on VOD and RBS.

I was watching the S&P charts while watching DayTraderRockStar, and noticed the buying volume coming into the game. I jumped in BAC for a quick profit and exited selling at highs, thinking it would retrace - and it did, but I did not reverse because the market is moving really fast at the moment.

The bigger news however was oil, down $8, so I immediately opened a long in BAY, and it went absolutely parabolic! Check out the chart:


Update, I missed the re-entry on BAY it's at 215.75 but oil is retracing at the market is closed. Depending on how oil trades for the rest of the day, BAY could be a high risk leading into tomorrow so I'm glad I'm out.

It's not only airlines that are affected by the shifts in oil price, here are another 2 charts from the same time frame as my BAY trade. Remember I mentioned oil producers and oil refiners are tradeable on big oil news:



If the OIL price is down:

• Go LONG: Airlines, Car makers and Refiners.
• Go SHORT: Oil exploration, Gold and Oil services.

Also note that drops in oil leads to rallies across the markets, so look for good relative strength stocks with volatility to trade in the very short term.