StockFinder 9:30-10:30 data is still down, apparently I was the first one to report it, which tells me there aren't many traders active today and they usually scream bloody murder the second the data feed is corrupt.
In any case, here's the argument for the longer term or at least swing trade (short) in USO, via long SCO is my first choice for the leverage.
Here's a 15 min chart of USO (green) vs the commodity complex which is being effected long term by a strengthening dollar/weakening Euro and as I have suggested and today Chinese PMI data confirmed, a lack of demand for commodities from the biggest importer of commodities due to an industrial/manufacturing slow down, to be more precise, down right contraction. You see how looking in dark corners can give you great insights, like the example of commodity action and a slow down in China? This is why we look where others don't, "To make money in the market you must see what others have missed".
As USO was on a rampage up for no apparent reason other then what I said was probably the biggest head fake in USO I can remember, you can clearly see the confirmation at the green arrow between oil and broad commodities and then the divergence, which also marked the top in USO, currently USO has a lot more downside to catch up to commodities, so at professional trading desks, this is seen as an arbitrage trade opportunity and will likely drag USO lower, and faster then commodities move on a daily basis.
Here's a shorter term chart of the same, the USO top while commodities had already started trending down (yellow arrows). Still a lot of USO downside.
Intraday we have a bullish ascending wedge and I mentioned 3C showed the possibility of USO pushing further gains intraday, there may be a negative divergence that allows another short entry in USO if you missed yesterday's of the top, which many of you hit to the day on the negative divergence-you all make me proud! :) So we're looking for a possible head fake breakout, which as of right now, has already started (this chart is 10 minutes or so older then the current action).
USO is fighting the FX correlation so that's another probability on our side so long as the Euro remains under downside pressure.
The 10 min chart featured earlier marked the exact top with distribution as well as accumulation at the exact bottom, there's no confirmation of the uptrend which broke today.
The longer, more important 15 min chart shows the same, which makes a good argument for riding out short term volatility and staying short USO and using any upside volatility to sell short in to. Remember that Friday on 11/11 when I wasn't feeling well, the market was up pretty god and I said, "I would use this strength to sell short in to"? Well it turns out many of you did and since then the market has lost -7.5%, if you used the directional trades I have been advocating lately (leveraged) like SPXU, then you made +26% in 8 days thus far. I know it is hard to short into strength, but ultimately, as long as 3C confirms like it did that Friday, it is much, much less risky then you think. We have to fight through fear if we want to make money. Heck, you think I haven't been scared through October being short the Model Portfolio and feeling a responsibility to all of my members (I would much rather lose my money then make a bad call for members), well it's paying off and that's why I remind you to watch the forest, not the trees. The WOWS Model Portfolio (which is going up against MT and Wharton Students) is now at #11 rank for the week out of 7850 portfolios weekly-nearly the top 10, with a weekly return of 47%, the monthly is ranked #26 of almost 19,000 portfolios with a return of 79%, that's following conviction, not letting emotions rule and looking at the forest, not the trees.
Here's my daily USO Trend Channel, we now have a gap from today, that may be the new target.
On my custom crossover screen (hourly), we have a sell short signal, the white area is the gap that may be filled and that is likely going to be our next add to spot.
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