Thursday, August 1, 2013

Straight Up

Straight up, that's what oil is doing the last two days (almost +5% since Tuesday's close). And today, indices finally got the hint and joined the party. Gains in major indices went from 0.7% (Dow) to 1.5% (small caps).

So small caps are leading, while all major indices went to new all time highs. After a two week sideways move, we finally see new highs. It looks like this is a fresh new break to much higher prices. But expect the breakout levels to be retested. Tomorrow, the job report is scheduled. A big follow through move or a ugly reversal, it's all possible (don't bet the house).

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
With indices ripping higher, the euro, silver and gold dropped 0.7%-1%.
Copper on the other hand went up 1.3%. But big winner was oil (that's two days in a row now)! It was up another 2.6% and is now trading only 1% under the high of 07/19/13.

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