The U.S. Oil Fund ETF (NYSE: USO) has been moving higher recently,
but remains in a bear market by definition.
Chart Courtesy of StockCharts.com
The price of oil has been rising lately, as have agricultural
commodities. The result has been a rise in the U.S. Oil Fund
as money is moving away from the dollar and into commodities.
It's hard to tell whether this is speculative money moving into an oversold market
or whether the slight improvement in some areas of the economy has led traders
to make early bets on a rise in demand for oil.
What is clear is that USO is starting to move very close to its 200-day moving
average. When the supply data is released later this morning, any bullish news
there could be enough to move USO above the 200-day line. If that's the case,
then we can see higher prices as momentum money starts to move more aggressively
into oil.
We are positioned in energy via shares of Anadarko (NYSE: APC), which has been
the best performing energy stock in the last several weeks. We are sticking with
that single position for now.
Dr. Duarte owns shares in Anadarko.
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