USO-On Track

Since last night I've posted two times on USO

Last Night

Pre-Market Today

Here were the initial pullback levels for USO

And as hard as it might be to imagine right now, the deep pullback...

This would be hard to imagine, but right now oil traders have a great opportunity to accumulate at lower prices, the opportunity doesn't come around often and they are sure to take advantage of it, we just want to be in the same place at the same time.

Other then some very short term positive divergence on the 1 min chart, which amounts to the normal intraday jiggles, there's not much sign of accumulation yet, so I'm expecting this pullback in oil to be a bit ugly, in fact wen it's done, you may look at the chart and think twice about buying USO. However, that is why I want to remind you now that their goal is going to be to shakeout as many traders as possible (we've already seen a drop of 3.25% today on rising volume-traders are getting spooked already. The point is however, the pullback may be very ugly when all is said and done, it may be even further then my most extreme guess,  this is typical for the market (huge overreactions). For all of you who like USO and believe oil is going higher, you have to separate the strategic (what the evidence has shown us about oil's near to mid-term future) from the tactical ( which is likely to be ugly and emotional).  As Baron Rothschild said in the eighteenth century, "The time to buy is when there's blood in the streets", metaphorically speaking, although in oil's case, it probably can be taken somewhat literally.