This article originally appeared on RealMoney.com on Sept. 2, 2014 at 2:22 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.
Sometimes the market gives you hints you are wrong. A little tap on the shoulder, "Excuse me, you might want to rethink that." Other times, she is less subtle. The tap is replaced by a shove to the ground. The polite "excuse me" is replaced by the sounds of your groans of pain as the market walks all over you.
I am going to accept the polite tap on oil and get the heck out of the way, which means I'm taking my loss on the long Diamond Offshore (DO) position. The taps includes a rising dollar, falling gold, falling oil and struggling stocks in the energy sector - plus, the market is near an all-time high. Maybe she's tapping a little hard right now, so I want to avoid the push.
Looking at the slightly longer-term chart on the U.S. Oil Fund (USO) , there just isn't a whole lot to like. Support comes in around $34.50, and I could see scalpers trying to trade off that level, but there is no momentum right now to support anything more than a dead cat bounce to $35.60.
STOCKS TO BUY: TheStreet Quant Ratings and Dave Peltier's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12 months. See them FREE today... Click Here NOW.