The market is doing exactly what I thought it would do, which is go higher. We are now at a very important point, the 1375 level needs to be taken out. If we are not able to take out that level we will be one step closer to canceling out the up-trend. And with IV this low we really have risk in vols popping. If feel like we are struggling to make new highs, and with IVs low the chance of making a break out is less likely. The reason I say this is because the implied move we could see is reduced with less fear. Now we could move higher, but a small retracement has a higher probability then a big move to the up-side. Now if we get this small retracement we could build up enough steam to push to a new higher high in this up-trend pattern.
Now the new trade that I sent was in USO. USO has been on a crazy move to the up-side, and I wanted to take advantage in the potential of some profit taking in USO. I bought a call diagonal with the strikes 36/38. My cost was 0, and I think we might see some sideway to a slight down move.