A weaker labor market, manufacturing production slowing, new home prices falling and crude oil inventories rising more than expected are all to blame for the big drop in oil prices. US also eased sanctions on Venezuelan oil.

That's the nature of commodities; fresh news can supersede older headlines and force the weaker longs out of their positions as we saw today. But...

Thanksgiving travel will goose demand. So will the decline in crude floating storage. Tankers holding crude are been at the lowest levels in 2 ¾ years.

India has increased consumption. OPEC+ will continue cuts of production.

Pick your side. I am going with "oil is the new gold."

The futures contract (December) looks oversold and into support at $72.00 per barrel. The USO ETF chart just broke the July 6-month calendar range high (horizontal green line) and is looking oversold. More importantly, 67 is huge support so we are close if not at the bottom.

And if oil is the new gold, you buy it when it looks awful, and sell it when it looks strong.

This is for educational purposes only. Trading comes with risk.

If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at Benny@MGAMLLC.com, our Head of Institutional Sales. Cell: 612-518-2482.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

Traders World Fintech Awards

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth.

Grow your wealth today and plant your money tree!

"I grew my money tree and so can you!" - Mish Schneider

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish and Charles Payne discuss why the small caps, now in mid range still have a chance to rally in this appearance on Fox Business' Making Money with Charles Payne.