Up until this point the Oil story has been somewhat perplexing. Investors couldn't get a handle on whether the WTI crude futures were trading too expensively in the high 40 dollar range because (1) U.S. dollar strength has been keeping the commodity cheap, (2) demand seems to have bottomed but the fundamentals of the economy
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There are several similarities between the way that the S&P 500 bottomed in 2002 and how the index has performed over the past 5 months. Studying the chart of the S&P 500 during the 2002 bottom, pay particular attention to the way that the S&P 500 tested the 50 day moving average (DMA) after the
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TNA has roared up throughout this rebound. It is an ETF which acts as a 3x multiplier of the Russel 2000 small cap index.  Small publicly traded businesses have been hurt worst throughout this recession due to the fact that they have been closer to the fire with respect to bankruptcy.  Take a look at
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The Federal Reserve is set to make their announcement of the Federal Funds target today after the meeting today. The "Fed" isn't going to change the rate from its near zero target, but the market is waiting patiently for any details of the TALF (Term Asset-Backed Securities Loan Facility).  Investors have pulled profits from the
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The momentum of this rally is extremely impressive. There has been a definite shift from pessimistic to optimistic, as economic data that is in line with consensus proves to drive the market higher. The rally was born in the sputtering exhaustion of the shorts and it gently turned positive, gaining momentum as it improved. Technical
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The 772 resistance level on the S&P 500 showed strength as a temporary resistance level today. U.S. equities came roaring out of the gates Monday morning, making a steady climb to nearly 775 on the S&P 500. This level represents 73% of the index's 200 day moving average (DMA) at the recent bottom. This pullback
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Bernanke spoke to the market and the nation on 60 minutes Sunday evening and called for an end to the recession this year. He hailed the plan and actions of the government to date saying, "we do have a plan. We're working on it. And, I do think that we will get it stabilized, and we'll see
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The manner in which U.S. equity indexes are ending the week today is extremely comforting. We are seeing the Dow Jones Industrial Average (DJIA) and the S&P 500 end the day with modest gains, completing a four day rally with positie gains every day. The close wasn't so high that it would tempt short positions
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