7.05.2006

NO NUKES?


Not sure if the markets are now dismissing the NK threat or the markets are going about their same old ways and following the price of crude. Just as T Boone goes on bubblevision and discusses $80 crude the markets put on the brakes and reverse as the oil stocks, which were leading on the way down, have flipped to green.

Internals have barely recovered and show 3,100 more losers than winners. The TRIN has also improved to almost flat and that adage of markets that are weak most of the day tend to close at or near their lows will be tested. I am following that adage and have shorted the DIA here at 111.6. Not sure I am going to make a windfall profit on that trade as a quick flip is all I am looking at.

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