I don't know if you folks recall but I made it clear about a bottom in oil (USO) on March 9 th 2009 : (Click Here) . And i have made several updates since then ! I was bullish all this time on USO,DXO,UCO and bearish on DTO ! Now it seems that the tables might start to turn ! I am calling for the "beginning" of the topping process for Oil :USO,DXO,UCO and the beginning of the bottoming process for DTO.
USO is getting overbought and will meet its fibonnaci retracement as well as its declining 200 day moving average ! These three ingredients will be very challenging for USO and the bullish Oil ETF's ! I thus advise you to start reducing exposure to Oil ETF's ! The topping process will take some time, but the upside potential in oil for the rest of 2009 is very limited in my view. We might get another high for USO around $45 this summer... but that would be it !!!
USO : United States Oil Fund
DXO : Double long Oil
UCO : Proshares Ultra Crude oil.
DTO : Double short Oil.