Upside Reaction in Oil, USO
Although the US Oil Fund (AMEX: USO) closed right at its low last evening, poised to decline towards my optimal target of 44, Saudi jawboning and innuendo triggered an immediate upside reaction this morning, which has helped propel prices from under 45 to a new January recovery high at 46.65. So much for re-entering the long side at or below 44. At this juncture I certainly do NOT intend to chase strength, especially since in each of the last four sessions, the USO has traversed a $1.50 range. Let's see if today's $1.50 upmove has staying power and legs for the rest of today and tomorrow.