Quick USO Update

The $USDX lost some ground since yesterday's highs, then it bounced right back to the same area, a tinge higher, but more or less stabilized in that area.

Incidentally USO has stabilized in this area for the time being.

There's still no question as to the gas in the tank on long term charts and oil is up to something, but right now I'm happy to stay patient with the half-size position which would allow me to take advantage of either outcome I suspect. There's enough room that I can wait out a base, not have too severe of drawdown and be able to add at better prices or there's enough of a position that on a true counter trend rally, which are very strong, the trade would be worthwhile.

This consolidation is USO since the first leg off the lows is bigger than I'd expect so from my perspective we are sitting right in-between a large consolidation for a countertrend rally and a smaller base that's still under construction for a trend reversal. I suspect USO will give us more to go on, which could happen in the next 30 minutes or it could be days, but until it gives me something more to go on, I'm happy straddling the line and being able to take advantage of either scenario.