Thursday, July 10, 2008
USO - Daily Chart
Like many Deflationistas, I expect oil to decline - at least in the short to medium term. Unlike most Inflationistas I dread watching gold and the gold stocks climb higher in sympathy to oil, as they are doing today. I await the day that gold simply casts off its euro, oil, terrorism and war shackles and climbs simply because of the terrorism committed upon global currencies. But I digress. Here is a daily chart of oil proxy USO. Panel indicators show bearish divergence, declining momo and room to drop further.