USO

Here's another one 3C called right at the bottom yesterday.

Our track record on USO lately (one of the more difficult stocks to analyze because of world events) has been flawless from calling the upside move, to trailing a stop and getting stopped out a day before the reversal to catching yesterday's bottom.

However, there's a more important lesson here. You hear me talk a lot about the accumulation/distribution cycle. There have been many events the past several days that normally would have shot USO up, but once smart money takes a position, they do everything they can-despite world events that run counter to their position, to see that position through. You can see how much firepower and support they will lend to their positions, despite world events that would move against them. That cycle I talk about is very strong and pretty reliable. Our view was after USO hit its target on the downside, which it did yesterday, it would move up, probably surpassing the last high near $42.50. We have at least 4 days of accumulation in the cycle, so be patient with USO, it should keep moving higher this week and into next week.