See the weekly chart of the USO etf (our proxy for oil).  Note the multi-year support zone between $30 and $31.  Given the low growth slowdown we are seeing signs from in the interest rates world it is hard to imagine oil continuing its ramp higher…

 

The yield on the 30 year U.S. Treasury bond is slipping again and currently sub 3%…that hardly speaks for growth.

The trade we see setting up here is to go short USO if a weak close in oil looks to be happening around 3:45PM ET. 

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