UCO/USO are breaking through resistance intraday-remember, I like them longer term, but they also seem like they need a pullback and we want to be careful that this is not a false breakout.
The 5 min UCO chart is negatively divergence, which casts suspicion on the breakout move, it could be the start of a reversal.
As this applies to the rest of the market, we are in a holding pattern right now awaiting Bernanke at 2:15, but we could see similar false breakouts in the market averages that lead to a pullback-which I think would be good.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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