Potentially Cash in on Plummeting Oil Prices with this ETF

Oil looks to be on the way down and I have a way you can potentially take advantage of the opportunity with an inverse exchange-traded fund (ETF).

This also has an impact on our existing oil position in the open trades, which I will get to later.

First, I want you to take a look at the chart for the United States Oil Fund (NYSE: USO), below:

As you can see, the forecast trend is lower for the next several weeks. My other forecast charts show the entire U.S. market on a downward trend (more of this in my Mastering the Markets premium letter).

With my data showing a possible decline in the price of oil, I have selected an inverse ETF for this week's recommended trade. The fund is the UltraShort DJ-UBS Crude Oil ProShares (NYSE: SCO) ETF. This fund is designed to generate approximately twice the inverse daily performance of the Dow Jones AIG Crude Oil Sub-Index. Owning shares of this ETF, in theory, means that as the price of oil goes lower, the price of shares of this fund should move higher. (more)

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