“Todd Gordon of TradingAnalysis.com begins by noting that in the financial crisis, crude oil fell 77 percent from its highs,” according to CNBC.
“Technicals say that in a good, solid pullback we should see an equal-leg push in the current move lower,” Gordon said Wednesday on CNBC’s “Power Lunch.” “A 77 percent drop from the reactionary high up at about $114 puts us at $26 in the crude oil market.”
For the more aggressive trader, there are number of leveraged options, including the ProShares UltraShort Bloomberg Crude Oil (NYSEArca: SCO), which tries to reflect the two times inverse or -200% daily performance of WTI crude oil, and DB Crude Oil Double Short ETN (NYSEArca: DTO), which also follows a -200% performance of oil, jumped 17.4%. Lastly, the VelocityShares 3x Inverse Crude (NYSEArca: DWTI) takes the three times inverse or -300% performance of crude oil. [ETFs to Hedge Against a Grim Oil Outlook]
United States Oil Fund