Some Members / USO Traders Are Getting Paid

On March 17th, I said USO had enough accumulation in it that it should be able to take out the March high;  I've said the same thing 19 more times since then. Guess what USO just did?

 There's the March highs taken out, there are several traders who have been in on this move since then and have stuck with it (I believe some options traders too).

 We expected the pullback in February even as the trouble mounted in the Middle East. The Reason? Dynamics in the Middle East caused a shift in the outlook of oil and institutional money needed to get a position going to take advantage of it, so even while events got worse in MENA, oil pulled back and institutional money accumulated a fairly large position.

 Here's that accumulation and we saw the same again off the March highs (the divergence is there, I just haven't marked it).

On 3/23 a pullback for USO was posted, "Based on the closing action, the daily candle and the resistance zone of the March highs, this is an ideal spot for USO to pullback a little, it wouldn't endanger the uptrend and would be good to wring out any excesses."  The 23 is the doji candle just to the left of the white box. The target was the 10/22 day moving averages at the red trendline. Note that this was a 4-5 day pullback and it was completely normal and healthy, although during it I'm sure it caused some concern.


Now we have new highs. We could certainly experience some volatility as is usually the case when an important technical level is broken, it's just too rewarding for the HFT firms, however, just as we've stuck with this trade since February, I continue to believe USO will post even more gains so I remain bullish on USO and for all of you who held in there, congratulations.