USO Update and Trade Idea Follow Up

Yesterday I closed the USO December $35 Calls that made +71% I said if it were an equity long I'd probably just sit tight, but I also followed that up with a USO Trade Opportunity yesterday.

Looking at USO today, I'm glad to have closed the calls yesterday and I still think we get the pullback, in fact I'm considering some VERY short term USO puts for the pullback, but the bigger trade is letting the pullback come to you for a USO long, whether USO or a leveraged ETF, I prefer an equity long for a more sustainable up trend.

Make sure to see yesterday's analysis linked above. As for today, We're still on track and I'm considering puts, although it's very speculative.

I'm not going to make the case for USO long again, I've posted that dozens of times, I think there's a link in yesterday's follow up post to one, I'm just covering where we are now and where we expect to be looking at USO long.

 We want to see accumulation in to the pullback, but first it has to start so we still have negative intraday divergences that should pull USO back- 2 min.

Here's a 5 min, also how we used a head fake/ stop run below support to enter at the lowest price with the best risk profile and where we sold before momentum faded and the calls lost half their value.

Also note the positive that started the move (white).

 Longer term 15 min large positive, we have much larger than this though so a pullback is very reasonable here.

The O-Over system that was short and now going long. After the first long signal, the first pullback is almost always to the yellow 10-day moving average.

This is where I suspect it will be by then. You can use the blue 22-day as a stop, but on a new position I prefer a wider stop so I pulled out my Trend Channel.

A 10day stop would be at $34, it will move up by then so if you need an update, let me know, but not much.

I prefer a wider 2-day channel sot a stop, even though the 1-day held the downtrend short perfectly for the entire trend. The 2-day would be at $33.65 so you'd have very little risk buying at the pu;back, and you have some stops so you can figure position size.

To reiterate, I LOVE this trade for a longer term position trade.