Tuesday, May 09, 2006

Bet on the Oil Price --- USO

USO (United States OIL FUND ETF)

USO is a domestic ETF (exchange traded funds) designed to track the movements of light sweet crude oil. You can pretend it as the oil price in the stock market.

If you believe the oil price will go up later, then USO probably is a good candidate.

Because of its nature, USO is for short and mid term player primarily. Its closing price of today, 5/9/06, is $68.40

My suggestion: Buy (7)
Instruction: Because the oil price is very volatile, you should not hold this ETF for long time. The typical play is that once the oil price reached your target, you sell it; when the oil price dropped, you buy it back. You should always check your get in point.


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