USO -EIA Report

Here's the EIA Petroleum status...
Released On 8/22/2012 10:30:00 AM For wk8/17, 2012

	Prior	Actual
Crude oil inventories (weekly change)	-3.7 M barrels	-5.4 M barrels
Gasoline (weekly change)	-2.4 M barrels	-1.0 M barrels
Distillates (weekly change)	0.7 M barrels	1.0 M barrels

As you can see there was a heavy draw-down this week of 5.4 mm barrels, however, the stock remains over 360 mm barrels which is the upper end of the historical range. Refineries are operating at the lowest rate since June.

Here's the reaction of USO on the release of the report.

 The reaction was rather muted...

 The 1 min chart is going negative as USO  climbs higher intraday

 The 2 min chart is negative too, these charts kind of remind me of climbing a hill of rubble higher with the rubble slipping beneath your feet.

 The 5 min is intraday in line, but in a leading negative position, which is the more important divergence.

 Here's how bad the 5 min is leading negative


 The 15 min has lost all momentum and saw a lot of damage done yesterday in a sharp neg. divergence.

 The 30 min chart is even worse.

As is the 60 min.

It's because of these charts that I felt confident enough to have a full short position open in USO.