USO Update

Yesterday as USO was up, I posted, "It's probably a decent time to fade the rally here", sure enough, if you faded the strength at any point yesterday, you were and are in the money today.

Remember, we watch for changes in the character of stocks and as I remind you often, they are usually subtle and fleeting glimpses. If it is something everyone knows, it's not worth knowing. Even small incremental changes in volume are important, rather then looking for huge volume spikes that everyone sees.

Here was the change in USO, although I have maintained my bearish stance on it a lot longer then this because of long term 3C charts.

 Since the new year started, it has been a good idea to fade USO strength, whether on an intraday basis or on a daily basis, look at the number of opportunities to fade strength and make a profit.

 Around the same time, USO's long term range bound trade started trending down, but I doubt few noticed this, take a look without the trendlines.

Most traders probably haven't noticed or given USO a thought thinking it is rangebound still.

 Note, just when the "Fade the Strength" phase started and just when USO started trending down, my custom indicator gave a daily sell signal.

 Even my X-over system called out a false cross-over in red and the real one in white with confirmation.

 The daily 3C chart and 4 stage cycle, we are just entering stage 4 decline.

Here's a pop from earlier in the week, worth fading and yesterday's move, again worth fading as 3C remains negative.

I have a longer term perspective on USO, but I am willing to change my stance if the market tells me so, for now, I'm holding longer term shorts in the MP.