USO Update

Yesterday USO was up, as I expected on tensions between Israel and Egypt. For long term members you may recall the power struggle that I thought would take place in Egypt as Mubarak was more a figure head and the real power was the military, who is the party responsible for throwing him out of power, which they had already planned on doing before the Arab Spring because they pick the presidents from within their own ranks ever since Nasser and Mubarak's succession plan to put his son n power didn't sit well with the military. While the people thought free elections were coming in 6 months, it's become obvious who is calling the shots. I warned to offset domestic uprisings, Egypt would look to create a sense of nationalism and that would probably be aimed at conflict with Israel and this is why I say "Nothing moves oil like tension in the Middle East with Israel". However, we have some interesting USO charts today to consider today.

 The 15 min chart has continued to fall apart.

However, the real damage being done today is on the 10 min chart. Just look at the leading negative divergence created today alone! I think USO is about ready to see some downside.