I am not usually the one to go out on a limb but this pattern looked extremely obvious to me. If fact, it was so obvious I thought I was imagining it or missing something. Back in July, I noticed a pattern where every time oil hit $100 a barrel, we’d start to see headlines about the war getting resolved. What the headline read was nearly irrelevant to truly ending the conflict but it sowed hope that an end was near and pulled oil back off the highs.
We saw this again last week, this time in the form of a proposal from Iran that pulled crude back to $96. And again, we are seeing the bubble of hope burst as that proposal is rejected.
The ETF USO has been a solid ticker to use to exploit this pattern and we are going back to it this week. Here is the chart and the trade to watch at the open this morning.
With the MACD still pretty elevated I would be ready for this to be a shorter move to the upside. The elections are also putting a lot of pressure on Washington to get this resolved. Not that they will but even headlines eluding to resolution could create resistance to another push up. The Nov 20 155 call is at about 9.32 pre market. I would jump on anything under $10 if you can get it but be sure to watch for the afternoon updates to see if there is a payout to lock in.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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