USO United States Oil Fund Review

This USO Oil fund is not something you want to invest in. Even speculating in it will just frusturate you due to the slippage in the charts. About the only thing USO is good for is to short when all the bulls are confinced oil is going to the moon. The 5 1/2 year sideways market does not reflect the futures market one bit, even though I entertained the idea of a triangle in oil futures as well.  This is a very popular fund so many players are going to suffer huge losses if they don’t get out.

It contains not just WTI crude oil but contains heating oil futures, gasoline futures and even natural gas futures, so I can understand why this USO fund does not track oil with any consistancy.

Even the rally after the 2017 bottom was very weak, compared to what the oil futures did do. The entire move from the 2016 bottom looks like an inverted zigzag, which in Elliott wave speak means a bear market rally.  All USO ever has to do is fall to a new record lows, which will confirm that our present rally has indeed been a bear market rally.

In this case it’s an Intermediate degree bear market rally, which also gives us the clue that the next huge bull market will be at least one degree higher.  Two degrees higher and we would be looking at a Cycle degree bull move!

My records show that USO has not recorded an inverse stock split, but it is something that may happen if USO ever approaches the $5-7 price level.

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