USO Update

I haven't seen the final verdict on the Crude Future trading halt imposed by the CME as of yet, but NANEX that does great work in tracking algos verified there was an algo running that stuffed so many quotes in to /CL that it caused the memory on the software to fill up and halted the day's trade for 75 minutes. That being the case, it looks like manipulation of the market by some predatory HFT, so I'm not taking the break above the channel too seriously as of yet, being it occurred under intense algo activity that was most likely predatory in going after another big player or a bunch of them. We saw something like this happen several months back when I believe it was the NYSE had so much quote stuffing that the system reached capacity and had to be reset during the trading day rather then overnight as each order carries a number and there is a finite limit.

 With this channel being so obvious in one of the biggest markets out there, it was only a matter of time before the algos took advantage of it, whether for volume rebates, whether predatory activity upon finding an iceberg, who knows, but the channel/trend were too clean and obvious for it not to be shaken out.

 The short term 3C is leading negative today and was negative yesterday, which seems to indicate this wasn't accumulation of oil, rather an algo stuffing quotes.

 Here's a close up of the same chart, now leading negative.

 The 5 min chart also leading negative.

This is why I preferred the 2-day Trend Channel which would have a stop at $38.96 ON the CLOSE.