TRADING TIPS

What is Up With USO?

Hubert Senters here. Got a question from Keith that Sarah sent me. Maybe you can cover what happened in USO and why it traded at $17 yesterday? So, interesting little thing going on USO it happened a couple of weeks ago. Usually when you look at USO it acts Crude oil. It will usually track the front month. You got a front month and you got a back month. And you got months in between. Most futures contract trading three month income. It’s not always because few contracts of trades is slightly different. But anyway, if you rely on only one single futures contract when that one futures contract went negative week and a half weeks ago then that could potentially make USO. Kind of implode on itself. So what they did week and a half two weeks ago I think that was on a Friday. They decouple from just being a front month contract and they did a blend of a contract month. It’s not longer going to be a one to one type of thing. Like when you look at GLD. Let’s take a look at GC so Gold is down $22. If you look at GLD that tracks the price of Gold futures pretty closely. Now, it’s going to be gappy because it’s going to trade like a stock like futures. Futures will trade 23 hours a day. Most of them. Not all of them but most of them so. USO used to track Crude oil but it no longer tracks Crude oil the way it used to do. It decoupled from it and now it’s doing a blend of the contract months and not just that either front or back that they were kind of peg to so that’s why. But I like it still. I mean it’s going to bracket similar to Crude. I will just trade it purely technically. When I’m going like this right here, I’m going here. That is the low bar. That is the high of the low bar right here. And you can see right there long around $17.97 or above. Targets will be $26 and then also $32. You could do the same thing with Crude oil. This was the low right there. It hasn’t close above the low yet so that would be the low. So in this case scenario Crude will be a little bit of different. You need to have a close above $22.64 in order to get long crude. Anyway, I hope that make sense. I’ve been asked to speak at the Extreme Market Conditions Summit which is going to happen May 5th, 6th, 7th starting at 9AM EST. Looks like I will be starting it Tuesday, May 5th. I’ll be talking about ‘The Optima Strategy: Levaraging Angel Investing for Maximum Gain.’ How you can get in and is the key to bigger gains. How to invest in promising startup and filter out the donkeys from the unicorns. I will HYPERLINK you to this registration page. Good luck. Hope it helps. See you on the next video. Hubert.

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