USO Update

As you may have seen this morning, tensions between Iran and Saudi Arabia who is opposed to lifting sanctions in the latest US sponsored deal are rising.

This morning Iran Siezed two "Fishing" Vessels in Iran's territorial waters that were flying the Saudi flag, interesting right after this weekend. However it turns out that the 9 detained are all nationals of other countries just to mix things up a bit.

Oil had an immediate knee jerk reaction to this apparent Saudi provocation which looked like this...

 This is crude futures this morning, I'm sure you can tell when the event was released in the media.

You may recall Monday after the weekend deal, we had a knee jerk reaction to the downside as well that proved to be transient or at least about all there was to it.

Thus far this morning, USO is not confirming the gap down.

 Here's the opening in USO, I still like USO, if I were to add or start a new position though, I'd want to do irt almost immediately at a cross above $33.50, it's important to set an alert because a shakeout like this and cross back above can create some strong upside momentum, it may be one of the few times I'd consider a limit order.

3C non confirmation of the gap down, so as I said, alerts for me at $33.50 and the larger base is still very much intact