United States Oil Fund
Now, onto oil. Crude prices have been under considerable pressure in the last few months, ostensibly shoved lower by the double-tap of weak economic demand and a Treasury-fueled strong dollar. But cash could be starting to flow back into commodities again as both of those factors start to unwind. The Fed is running out of tools right now to ratchet up bids for Treasuries -- as a result, alternatives such as commodities should benefit.
There's a good example of that in the United States Oil Fund (USO), the de facto ETF of choice for investors looking to get exposure to oil prices. USO showed off strong price action yesterday, breaking out over the $35 resistance level that had taunted traders for most of the summer.
While a positive divergence in the 14-day RSI tipped off some early upside bias in oil prices, the actual buy trigger hasn't been tripped until now; as with Juniper, that breakout could get confirmed this morning. Also like Juniper, the most logical technical level for a protective stop is the 50-day moving average.USO is one of the holdings of Wilbur Ross' Invesco Private Capital.
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