USO Update

As I suspected earlier, the DOE draw on crude announced earlier this morning, seems to have been a non-event as the practicality of restocking is pretty obvious, Crude looks to be headed lower, so why restock now?

 This is the Euro in red vs USO, FX arbitrage isn't giving USO any opportunities to the upside.

 The 1 min chart saw the early knee jerk reaction on the draw, which is you remember was accumulated before the report was released in what appears to have been an obvious leak of the report ahead of time. It seems that intraday knee jerk rally was promptly distributed.

There's the early positive divergence before the report came out, distribution of the intrady rally and a slight positive now. I would like to add to oil shorts in the gap above which seems to be the new target, lower then the previous. Gaps are normally filled and with tension in the Mideast, this may be filled, for now I default to yesterday's idea of having some exposure, maybe adding in that gap so long as 3C is negative looking and maybe adding the rest on a break of today's lows. I don't want to add too much with a long weekend and the potential for a lot of news out of the Mideast/Syria. I'd rather take that risk when the market is open next week rather then the few trading hours we have left this week with 4 days or so of possible Mideast news.