Monday, February 12, 2018

Crude Oil (USO) Is Good For A Small Counter-Trend Play

I was looking at Crude Oil ETF USO and a small counter-trend rally seem to be afoot. This isn't just isolated to Crude Oil as a counter-trend rally is appearing across many ETF's (more on this tomorrow). When I mentioned Emerging Markets ETF EEM last week I was pondering whether this this was a three wave or five wave correction. If this is five wave correction we will see some volatility up to a line of resistance and then another fall. Another blogger made a very convincing argument that Crude could rally to $63.50 and I'd have to agree, but beware the approaching resistance lines.