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One Key To Extending Your Longevity? Avoid Crude Oil Future Trades

August 10, 2017 1:42 pm
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JC Parets, the author of AllStarCharts, stopped by PreMarket Prep Thursday to discuss, among other things, S&P futures and crude oil futures. Here are the highlights. 

S&P Futures

"We broke out of that 2450 level in July, and that was a big deal. That 2450 in the S&P 500 is a big one. If we start to fall below that, then we are no longer making higher highs and higher lows. But we haven't broken anything of that yet."

Crude Oil Futures

"It's a hot mess," Parets said. "That lack of trend is trend recognition in and of itself. Here we are looking at crude oil right at a flat 200-day moving average. If you guys want headaches, buy and short stocks that are trading near flat 200-day moving averages.

"This one lesson is one I had to learn the hard way because I kept having to get beat over the head with it until I finally realized stop trading damn stocks near flat 200-day moving averages. And it goes the same way for futures. Literally the crude oil is at a flat 200-day.

"I do think we can potentially get back up into the $70–$80s in oil, there’s no question. The problem is where do we enter? Let's say hypothetically we buy it today. Where are we wrong? Where's the out? Are we wrong before $40? I don't have a pivot point to trade off of where I can say "If it falls below this, all bets are off." Crude oil's not giving us that right now and the fact that there's no trend is evidence that we shouldn't be looking at this in the first place."

He added, "If I never trade another crude oil future for the rest of my life I will most likely live a longer life. So, I'm cool with not being in this market."

Catch the full interview with Parets at 32:50 in the clip below. 

PreMarket Prep is a daily trading show that airs every morning from 8–9 a.m. ET here and on our YouTube Channel. You can also listen to the podcast on iTunes, SoundCloud and Stitcher

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