[USO] [PBR] update

This is really a commodities update in general.  Right now I am building positions in the beaten up oil patch as well as in the gold miners because while a real bottom might not yet be in hand, one is very close for commodities IMO and when it reverses it should be a powerful rally.

I'm noting right now that there is bullish nonconfirmation in USO and PBR.  USO is obviously working on a 5th wave down with a lower low while PBR is struggling to put in a lower low.  Of course it's not over until the fat lady sings but this is exactly what I would expect in the final stages of a bear market - the miners and producers bottom before the underlying commodity.

I want you to pay special note to the USO chart.  We are now obviously working on the 5th of 5 of a bear market which began in 2008.  The 4th wave was clearly a HT.  It's not often that we get such a clear EW formation to guide us.  I don't know where the exact bottom for USO will be but I do know what the initial price target will be when it does bottom and that will be $40.  And that is under the Prechter model which says that commodities have a strong rally and then one more big ass wave down before the real bottom is seen.  Under the Avi model I would expect gold and commodities to move up strongly past black 4 for years to come leading to a significantly higher high than the prior high.

One way or the other, everyone should be buying into commodities at these levels.  It is likely a once in a lifetime opportunity to take advantage of massive wall st deleveraging in the sector.