Oil Chart Updated, Consumer Sentiment Jumps

On July 3rd, we effectively went long oil via USO.

At the time, we wrote: "The downtrend, in green, is not yet broken, and more overhead resistance remains at previous peaks (roughly $110 and $118), but we'll speculate on oil continuing higher."

Below is an updated chart, showing that the downtrend was broken as expected and that oil stopped just below the $110 resistance (marked by the black horizontal line):

As long as the uptrend (in red) remains intact, we'll expect the oil price to keep rising thus we'll hold USO.


Friday we learned: US consumer sentiment jumps to six-year high. 

Many see this news as very bullish.  We'd remind them that multi-year highs always precede a turn towards multi-year lows.

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