There is some news out today that is pushing the price of oil over $100.00 per barrel. The world is finally realizing that cheap oil is no longer available (Link-1). Is this a new day for oil? There's no way to know for sure, but if want to bring the price of oil down chase it here. Really, it's one of my favorite techniques! The stochastic on USO is over 80 and the price is consolidating in a flag pattern. We still have a hedge the short position on OIL. What I'm thinking of doing is this: take a full position of USO and just hold even if it falls back, that's what the short on OIL is for. If OIL breaks 60 or USO breaks 80 I will stop out. This is a short that is not easily squeezed. I will post the alert to buy USO.
Link 1:http://www.npr.org/templates/story/story.php?storyId=17784031
Link 2:http://bigcharts.marketwatch.com/interchart/interchart.asp?OKButton=+OK+
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