USO: Even Worse Than Last Week
While I was looking for some clarity over this past week, the USO provided even less clarity than we had last week. At this point in time, I would say that the green pattern and the red pattern have probabilities that are basically equal. In other words, the wave structure is suggesting no edge at all at this time.
You see, the move up off the August low was 3 waves, and the decline from the August high was 3 waves. Moreover, it is hard to classify the rally of the September low as a clear 5 wave structure as well. This leaves us without any discernable wave structure upon which we can rely or trade.
So, as I have noted to my live video members, I remain underweight this complex (the positions were purchased at much lower levels), and have no reason to even move to a full position until more clarity is provided within this chart. When we do get more clues as to how this chart will break, I will send out an Alert. But, my "preference" still remains the red count, as I would like to see a double bottom or lower low to begin the count off the lows over.