I really have no idea why this trade continues to work, "Fade the DOE Report", but the earlier 3C signs were pointing to it working and thus far it has.
1 min positive divergence at USO's lows, turned into a positive leading divergence.
The 5 min chart has a positive divergence as well. For now, I'd treat this as a short term trade unless we see the 10-15 min timeframes start to show the same positive disposition.
This 1 min Trend Channel would be a very tight stop, along the lines of day trader, it's too tight to allow for any consolidation.
The 5 min TC would probably still take you out around break-even and will allow for a small intraday consolidation. For now, this is the stop I'd prefer. If USO can get some more upside momentum, we can widen the stop a bit more to allow for an intraday consolidation.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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