USO Update

USO is moving exactly as expected. Yesterday we closed the USO short, Closing USO Equity Short and for these exact reasons, USO P/L and Follow Up.

Today, it is moving exactly as suspected yesterday and the exact reason it was closed yesterday (I'd like to see the market act a bit more like this).

 After yesterday's sharp gap lower we closed the position anticipating an oversold bounce. Today's daily candle is a bullish reversal Hammer and on volume, this is the reason for taking the USO short gains off the table.

The intraday chart is showing a nice divergence in to today's reversal candle-this is what we are missing from the major averages thus far and why no additional action has been taken on them yet.

The process of migration or strengthening of the divergence is taking place as the 2 min chart is positive

As well as the 3 min chart.

I would NOT call this a trade unless you are very nimble, it's likely to bounce in to the gap created yesterday, but this is not the larger accumulation for a primary trend reversal we are looking for to open the next trade here. This can be traded on the upside, I just don't see the signals be strong enough yet to warrant the trade as they don't look like much more than a gap fill at the moment.

However, we were right to close the position at +15% gain yesterday.