[USO] update

Backlink.

Despite the hope for a bigger blue 4 bounce at the backlink, USO seems like it is now working on the 5th and final wave down of this ass beating.  If the count is right, it will be the 5th of a very large 3rd wave down and the expected recovery bounce should be a vee bounce because wave 2 of this large structure was sideways.  If we see this then it will represent a lower low for USO and at that time do yourself a favor and look around at VNR, GLNCY and ARP to see if they also have put in lower lows as one would think they should since their share prices are related to resource prices.

At serious bottoms like this, there is often a bullish divergence.  The owners of resources and the producers of resources oftentimes do not put in a lower low.  Even if only some of them exhibit this behavior that would be a major buy signal.

It is also possible that blue 4 is not really done yet and that it is forming a HT.  All this would do is delay the likely bottoming into the spring.  A breakout above blue 4 means something unexpected is happening that needs to be carefully evaluated.  I do not expect that to occur.  My current primary model is for USO to bottom between $6.50 and $7.50.

Be cool like a cucumber.  Let the waves play out.  Don't get over anxious to buy.  And get your mind right about buying when the wave count says you should buy so that you are ready to do so when the sheeple are panic selling their shares right into our waiting arms.