My pick: Buy oil at $68
Expertise: Technical analysis
Average time frame of trades: 5-10 days
Explanation: Oil has been trading in a choppy consolidation over the past several months, and while we still see room for additional pullbacks over the coming days below $70.00, any additional declines should be very well supported in the $68.00 area. Daily studies are approaching oversold and a test of $68.00 will have the market poised for a material bounce. Strategy: Buy at $68 for a $78 target with a stop at $63. My FTSE short trade met its objective last week.
My pick: Pending short gold at $1,070, stay short Nasdaq 100 at 1,840
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day to 1 week
Explanation: The tides of underlying risk trends have settled over the past week, but volatility and momentum will likely be whipped up once again by an active economic docket this week. I will stick with my Nasdaq 100 short from 1,840 and trail my stop to breakeven. Should activity once again pick up, I will be ready with a short entry on risk-sensitive gold. Strategy: Sell at $1,070 with a $1,010 target and a stop at $1,115.
My pick: Stay short crude oil
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week–6 months
Explanation: I sold crude two weeks ago after the weekly chart showed a bearish engulfing candlestick pattern below resistance at the top of a rising wedge formation. Prices have been locked in consolidation above $72.66 and positive RSI divergence hints that an upswing may be ahead. I see this as corrective and will remain short, but will move up my stop as a precaution. Strategy: remain short, initially targeting $66.10. move stop-loss to break-even.