USO / SCO

USO is down over 1% on the open, this is a position we are in on via the 2x leveraged SCO, but if you are interested, I think you might get a second chance as the gap may be filled. I would seriously consider SCO or USO short on any strength toward the gap.

Here's the 60 min chart of USO, first note the development of the negative divergence and second, note the timeframe and how serious it us, this is why I chose SCO to ride out a longer term trend with some leverage, but not too much leverage that I can't rise out the corrections.

USO 60 min chart, a very common cycle, accumulation, prices advance, distribution in to higher prices, a leading negative divergence and then the break lower.

If you are currently long SCO from our position last week, I wouldn't move anything around so long as you used proper risk management and don't have a position too large (See this link for information, this one on the 2% rule for risk management).

I'll set an alert for a possible gap fill move and we can look and see if there's a decent entry for USO short or the 2x leveraged SCO (long). Perhaps even a quick options trade (hit and run).