USO-DOE Inventories

The DOE report out at 10:30 showed a build in crude inventories and above the average for this time of year. There seems to be some contradiction with the API data released yesterday. Gasoline inventories increased, but are in the lower limit for the average at this time in the year.

 Initial knee-jerk reaction was a pretty decent size dip on high volume before USO continued higher above the trendline of resistance, still no volume.

3C is showing a slight negative divergence at this point, so look for a consolidation at minimum.

We have had several profitable trades on inventory reports before that were countertrend or counter-expectations so I'll be watching USO for signs of anything worthy of a trade.