USO Update

On September 20th at 3:06 p.m. I closed out a core short position in USO (pure short-no leverage) at a slight gain.

I of course want to se where the probabilities are for any new positions, but it does appear USO will make a move higher.

If I had time I might even take a speculative long position for a swing move, non-leveraged.

 This break from the channel which first failed to meet the upper channel is a very obvious technical short set up, you know I never like to short the first break and I'm not even sure I want to short oil until I see how it reacts on a move up, if there's distribution, but from a manipulation of technical trader's standpoint, a new high above at least where it broke down would be the most probable outcome just from a market behavior standpoint.

 Here's where the short was closed in USO.

 This 10 min chart is the one that interests me for an upside move.

This 4 hour chart is why I want to pay attention to underlying trade in any upside move. We do have inventories Wednesday which may be a catalyst.