Trade Update USO OIL:

In yesterdays alert I wrote get out of OIL, buy to cover, but since I was long 50 shares OIL I should have said sell 50 shares OIL. Sorry I will fix that post latter. The important thing is that short covering came in yesterday an pushed the USO and OIL higher. I decided not to exit the trade on the basis of short covering and bid rigging by the FED and Treasury department. Was that wise? Only time will tell, but take a look at link 1. You can see the double top above 75, then a bounce off the 68 area followed by a run back up to yesterdays close @ 73.90. If today we USO fails to breech that 75 mark, then it's very simply all she wrote. It will retreat back to the 68 area and probably down to 60 in the upcoming weeks. I would not go long again USO until it breaks it's 52 week high of 77.59 with force. I would not go long OIL ever-don't want to wake up some day to find out Barclay's is bankrupt. OIL is strictly a short side hedge. So now we are short 50 shares OIL and 50 shares USO