USO Update

Still looking for a decent short entry in USO. I feel pretty confident oil will fall back, however a good entry in to the position is what is lacking and I'm hoping we might see such an entry today.

 While the $USD is the currency oil has its correlation with (inverse), because the Euro is so tightly correlated to the $USD (again inversely), it makes for easier analysis of divergences. Basically oil/USO and the Euro should move roughly together, however that has not been the case  over the last week or so. In my opinion, this lack of FX correlation puts USO on shaky ground.

 USO negative at yesterday's intraday highs and a slight positive divergence this a.m., I'm hoping USO will see some price strength intraday in to solid negative signals.

 A closer view of the 1 min this morning.

 The 2 min is seeing some migration of that 1 min positive divergence, this is why I have some hope that USO will move higher intraday and hopefully in to solidly negative divergences.

 The 3 min chart is leading negative since a relative negative divergence at yesterday's highs.

Ultimately between the FX dislocation and the 30 min chart's negative divergence, I think USO cold be a worthwhile short trade and even though I have confidence USO will move lower, a decent entry can often mean the difference between a successful position and a failed position.