Your Eyes Better Be on Oil

We had an inside week in the oil patch last week, and you better be watching USO and its derivatives come Monday.

As we know, inside bars represent an equilibrium and we want to see this break next week. A break above last weeks highs we have a long bias, and the break below we are obviously short. If we do break below (and stay below) 8.54 for USO I would definitely get in an trade SCO and DWTI to the long side. Highly volatile but amazing trading vehicles in this oil decline. SCO is the 2x inverse and has options, as does UCO the 2x-leveraged long derivative.

If we look at the Crude Futures, 29.40 is key support for Crude heading into next week.