[USO] update

Here is the backlink.  Folks, did you catch the GLD/SLV/GDXJ/JNUG train?  If not, don't say that nobody saw it coming but whatever you do DON'T CHASE.  At the very least let it come back to you a-b-c before pulling the trigger.  Instead, think for a moment.  The commodities have all gotten beaten up and not just a little.  While I would eventually like to see WTI crude hit a lower low than its prior crash (in other words, prices in the 20-30 range roughly) in order to complete the C wave, nothing goes straight up or straight down and USO has been going nearly straight down for some time now.  

In my previous post on USO I indicated that the model would likely out itself soon and today I'm giving you a very high odds setup, the kind you don't get very often.  So pay attention if you are smart!  I'm not guaranteeing that this will be a winning trade.  Nobody can reasonably make such guarantees.  But I do think we have a low risk high reward setup here with obvious triggers and that is all any good gambler can ever hope to get.

USO has put in a clear 5 waves down from a 5th wave triangle.  But that could be 1 of 5 with the recent move to $18.60 being 2 of 5 and the chart getting ready to sell off even more.  It's possible.  But this wave now counts more like the model shown below where the recent pullback to the mid $17 level was just wave 2.  If that is the case then expect a big and fast move up into wave 3 as oil begins to play catch up with gold and silver on the rebound.

So the play here is simple:  Load up at this level then set stop losses for one penny below the low of the 13th (about $17.05 should do it).  Then just forget about it for a few days.  It will either break down into 3 of 5 or it will begin to skyrocket from here.  I think the odds are greatly with the latter: oil and oil drillers are about to catch a bid.  If you want to play with monster leverage a-la-jnug there is RUSL.  If you big leverage without the time component, look into the stock with ticker WTI.  This is a smallish driller that happened to take the acronym commonly used for West Texas Intermediate crude oil.  So don't be confused between the two.  WTI (the equity) is going to be a screamer to the upside when oil finds its footing and there is no time value in it so you could hold it for 2,3,4 months or more without seeing the options value bleed off.  In addition, I think the margin requirements will be reduced for WTI vs. RUSL or any of the other triple plays.