Wednesday, June 22, 2011

Be Careful with USO/UCO here

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.

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