Crude oil found support exactly where it needed to—right at the 0.618 Fibonacci retracement level, then turned up. That tells me something important. When every pullback in crude is met with aggressive buying, it's not a signal I want to ignore. Historically, that's not the kind of price action that bodes well for the broader stock market. To me, it suggests the market isn't fully buying the optimistic narrative around geopolitical tensions easing. If traders truly believed the risks were behind us, crude likely wouldn't be showing this kind of strength. Price action doesn't care about headlines. The chart often reveals what's really happening beneath the surface, and right now it's hinting that inflation risks may be starting to build again. My game plan: I'm using this pullback as an opportunity to look for selective Energy exposure while the trend remains intact. For short-term positioning, buying call options on strong energy names or oil ETFs can be an efficient way to capture upside momentum if the move continues. This works best when you’re expecting a near-term continuation of strength but want defined risk. Pure Play: USO Calls Earlier this month we bought USO August calls that were up as much as 942% before crude and USO suffered that 62% correction. Time to wash, rinse and repeat, only this time, let's go out to September expiration. USO Daily USO Sep $150C Let's not make this any more complicated than it has to be: USO made an intermediate term high on May 18th @ $154. Assume that is the minimum target for the next leg higher, making the $150C a natural pick with lots of "round number" liquidity, If it goes there in a hurry, we can roll over to higher strikes along the way, USO Daily - Fib Extension Wave 5 Buy Signal w/Fib Targets. QQQ Daily "Geopolitical Headwinds"
