We have experienced high volatility in the stock market for the last several months, and I firmly believe this scenario will continue until the price of oil stabilizes. 2015 shows expectations of low oil prices all year long. This will translate into market uncertainty even if the rest of the world is calm.
During the past four months, I have made money on UDOW three times, and I expect this trend to continue. We are having extreme volatility on a daily basis and a weekly basis. UDOW can easily move more than $5 per share in a day's time, and I only need a movement of $10 per share to make the trade worthwhile for me.
My last trade on UDOW was completed in a week's time, and I have a buy order for UDOW again for $131.62 good until canceled. Then, after I get the shares, I plan to enter a sell order good until canceled for $142.62 for a profit of $11 per share. Volatility is the trader's dream. When this trading range quits working, I will find the next range as long as the basic trend of the stock market is up. Only a bear market or low volatility will cause this trade to fail, and I don't see that happening anytime soon. So, 2015 is the year for UDOW.
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