After the Iranian nuclear deal, analysts were all talking about how oil
was headed much lower in the short term. Oil
barely opened down today and is hovering at $33.74, -0.30 (-0.88%) on the United States Oil Fund
LP (NYSEARCA:USO). While the lack of a major drop in oil
was surprising to analysis and Wall Street traders, this was no surprise to me. Everyone knew a deal was coming over a month ago and oil
has fallen almost non-stop because of it. Essentially, oil
had already factored in the Iranian nuclear deal. In addition, oil
is more a factor of global economic growth than one country putting out an extra 1 million barrels a day of oil
. As economic growth starts to uptick in the coming months, oil
should find footing.
I have a master level on the USO
which is my buy price at $32.25. There should be a solid swing trade bounce at this before the longer term down trend continues.
Chief Market Strategist