USO Fade Trade from yesterday

Yesterday afternoon 3C gave some signals that the earlier strength in USO could likely be faded with a short position in USO or long SCO. Here's the post from yesterday and the post just before it.


I hope someone got some of that action.

USO is down over 3% on the open, using SCO you would have made 6% for 30 minutes of trading exposure, not bad at all.

Here's what USO is looking like right now.

 Both the 2 min above and 5 min below are confirming, but the red box is a leading negative divergence from yesterday, this is what prompted the trade warning yesterday.

It's difficult to get a stop in place so early, at least a trailing one, but on the SCO trade, if you were taking a short term trade, I would consider taking some profits as intraday volatility is sure to follow.

For longer term traders, USO broke the up Trend Channel and is in a short trend now,  would use the daily stop.

Here's where the trend switched at the red arrow, the top of the Trend Channel is the stop for shorts ON  A CLOSING BASIS ONLY!

The market is starting to move now after a lot of chop, it's time for action, don't sit on your hands, but also be smart about your entries, don't chase, let the trade come to you.