Is deflation over? I dunno, but I can see that OIL has turned up and just broken it's 100 data moving average (dma). You can see both the 100 and 200 dmas flating out and turning up. The stochastics are above 80, but they could stay that way as the trend turns. Don't worry about the stochastics in a trend. The data gets skwed in the direction of the trend. I'm gonna take a 1/4 position on Monday with a stop at the 100 dma.
Except for the scale being $10 more you can say Ditto for the USO. Take a 1/4 position on Monday and hold as long as it stays above it's 100 dma.
Caution if you buy on the open. If you see a gap open be aware that the specialist is playing es and wait while for a pull back before you jump in. If I'm right this is the beginning of another trend, due mostly to rotation, but also inflation. Put it this way I'm sure it's not a demand driven price increase.
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