Two sells today, for very different reasons.
First, sell the remainder of your position in VelocityShares 3x Long Crude Oil ETN (UWTI) at market. This "bull" exchange-traded note has been doing very well for the Micro Energy Trader Portfolio: we sold 50% of the position on April 22 for a 98.75% gain.
As of 1 PM Eastern time today, UWTI now stands at a 130% gain since introduction two months ago. Sell the remainder of your position and book a very nice triple-digit profit. Congratulations on another nice return! Let me know how you did on this one by clicking here.
Now I believe UWTI will be rising again after a consolidation, albeit at a slower rate given the underlying oil pricing advance. But I also think the current rise is just about over.
We will shortly experience another rise in surplus volume in the U.S. market (an inevitability following the strong crude oil pricing rise over the past two weeks), while the wildfires in Western Canada are coming under control. Both will signal resistance to further short-term oil pricing gains.
Remember, UWTI magnifies the underlying crude oil price by a factor of 3. When that price is rising, we make a nice return. Yet that will reverse as soon as resistance to further advances kick in.
It's best to take the profits off the table now and come back in later for another ride up.
The second sale today is CUI Global Inc. (CUI). We introduced the stock on February 25 but it never gained traction, and today it triggered its trailing stop. Had you been following our approach, you are already out of the position. If not sell now.