Though we may re-test these lows and potentially go minimally below them, yesterday's action constitutes capitulation in real-time. As a proxy for investor sentiment in oil, the ETF with ticker USO attempts to track the price of oil and its chart is compelling:
![](http://4.bp.blogspot.com/_wmz32xeNKtU/SU1oOGIEOpI/AAAAAAAAARg/5ld_i8YsgCg/s400/Oil+capitulation+-+december+2008.png)
Also encouraging is the percentage of bullish sentiment among investors:
![](http://1.bp.blogspot.com/_wmz32xeNKtU/SU1q-xKqEMI/AAAAAAAAARo/zFH-nOHGM0M/s400/Oil+sentiment.png)
Oil, using the ETF USO, is a low risk short term trade regardless of where you think the long-term price of oil is headed, because no market moves in a straight line. Going long at the 32-33 price level in the USO ETF should be good for an easy 40-50% gain over the next 3-4 months.