Thursday, March 1, 2012

Oil is racing higher, indices not so much

A rather messy and volatile first few hours today, but two hours into the session, an uptrend began. It lasted until halfway through the afternoon.
It was today's spike in oil after rumors of a pipeline explosion that made stocks pull back in the afternoon. When oil retreated from the highs, indices finally found support and started rising again. A nice end of day rally brought us back towards the highs.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals bounced only little after yesterday's massacre. I'm expecting new lows soon...
Oil had a great day. After yesterday's hammer, it added +3% intraday. I didn't expect that 110-resistance would be retested so soon, but mind you, it was on news/rumors. A few days of basing near this number would be healthy and we'll see 115 next.
The euro traded mainly sideways today. Not being able to climb together with the market, isn't looking promising for the near future (is the correlation with indices gone again?)

Articles for tonight:
Bernanke's Poker Game
Bohemian Rhapsody Cosmopolitan Commercial

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