USO Update

One of the best short term trades we've had in USO was a build on an expected drawdown, USO fell in the hour ahead, but showed very positive divergences, some members took a long position as USO was at the lows (turned out to be the lows of the day) based on positive 3C divergences. They made a nice profit that day and over the next couple of days.

Today we have the exact opposite, a huge drawdown, way out of whack with consensus, USO has rallied off this morning's opening lows, but shows a negative divergence forming

This scenario of contrary trade may play out again, it seems to do so in USO every once in awhile. I'll b watching for a test of this morning's highs at $38.24 and see if the divergence is worse. A speculative trade may consider taking a short in USO with an intraday cover past the highs of the morning, in other words cover if a new high is made. Right now the risk on that trade would be about $.24-$.30 per share. Or the other trade scenario, a test of $38.24 that fails with a continued negative divergence.