Friday I closed the USO Aug. 33 Puts that were entered Thursday at a 30+% profit on the notion that we'd see a gap fill today or at least a partial gap fill.
Here's the update for USO which has started moving in to the gap...
USO 5 min is positive from Friday, part of the reason for closing the put position at a profit, you have to be nimble with these trades.
The longer term 15 min chart looks much like the rest of the market, it looks ready for a decent pullback and USO is disconnected with the FX legacy arbitrage, essentially rich compared to the normal correlation.
The 1 min chart intraday on the move higher is already showing some negative divergences, we aren't quite there with migration to the 2 min chart, but I'll be watching the USO 2-3 and 5 min charts for a new Put/short position entry which I believe we will get very soon, possibly today or tomorrow.
I'd assume this should be along the lines of a 3-5 day trade, although I still prefer to remain very nimble in this market environment when using leverage.
Just one to keep on the radar.
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