I'm still holding the USO May $38 calls that are slightly in the money right now, we have the EIA Petroleum report at 10:30, but thus far it looks like the falling dollar overnight (I showed you last night vs the Euro) looks to be responsible, yet there are still very solid positive divergences in USO.
USO 5 min positive divergence yesterday near the lows
USO 15 min leading positive divergence
30 min leading positive divergence
60 min leading positive divergence
The $USD's drop on the open.
The EUR/USD since yesterday's close...
We have had many instances in the past with the EIA report, it seems to be one of the most leaked reports on Wall Street, yet we often see some strange initial behavior in USO right after the report is released. I'll be looking for higher prices in USO, especially given the 30-60 min positive divergences and will hold the position as long as I can until it shows short term negative divergences suggesting that the position may be under distribution. If I had to guess, I'd say the report has been leaked.
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