In mid-November we stated that we'd "close out of the [oil] position and re-evaluate it should crude close below $40 for three successive sessions".
Crude has closed below $40 for three successive sessions therefore we did close out of our related position as planned, losing 12%, however will re-enter a bullish oil position via UCO when it trades above $14.50
Currently sentiment is extremely bearish and very bearish articles proliferate in the financial news. Oil is down around 70% from the 2013 high and roughly 75% from the all-time high of 2008.
Eventually oil will skyrocket and related ETF's such as UCO will at least double, probably triple, over the course of a few months, and we intent to catch most of that action so minor losses via prudent speculating along the way isn't discouraging to us.
We'll revise our entry point if UCO continues to drop significantly.
Here are updated oil charts:
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in UCO over the next 72 hours.