Pilobolus Equity Research: Spec Buy scalp: USO 43.19 (Crude Oil ETF) is severely oversold

Thursday, January 18, 2007

Spec Buy scalp: USO 43.19 (Crude Oil ETF) is severely oversold

Rationale: After this mornings' crude inventory builds, Feb '07 Crude oil is severely oversold and is poised for a temporary bounce. The USO Oil etf (USO 43.19) ) which tracks the crude oil contract is also oversold. Hugging the lower bollinger band since Dec 26 '06, the ETF appears poised for a strong snap back to re-test previous highs. 60 min charts reveal diverging upside momentum while ADX numbers continue to erode the downside trend move.

Target: 46.00 (above Jan 12th highs)
Stop: 42.50 (below Jan 18th low)

About Pilobolus Research

Seth F. Wolff
A ten year institutional market strategist formerly with IdeaGlobal & Charles Schwab (Cybertrader Corp) advising institutional clients in the equity,commodity and fixed income area, with prior roles in institutional research sales in North America. Seth has also appeared in media coverage including Dow Jones and Bloomberg. A graduate of the University of Arizona with a B.S. in Finance and continuing studies at NYU Graduate Business School, Seth has also been a member of the Market Technicians Association (MTA) since 1990.

Disclaimer: Pilobolus Equity Research obtains information from sources deemed to be reliable; however, Pilobolus Equity Research does not guarantee the accuracy of any of the information or commentary provided. Pilobolus Equity Research makes no warranties, expressed or implied, as to the fitness of the information for any purpose, or to results obtained by individuals using the information. In no event shall Pilobolus Equity Research be liable for direct, indirect, or incidental damages resulting from the use of the information. Pilobolus Equity Research shall be indemnified and held harmless from any actions, claims, proceedings, or liabilities with respect to the information and its use.

Pilobolus Equity Research

Thursday, January 18, 2007

Spec Buy scalp: USO 43.19 (Crude Oil ETF) is severely oversold

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