THE WRAP

Cramer on Stop Trading and he is bullish on oil stocks such as SLB CVX etc. I don't know if its right or wrong, but crude busted through the $76 area and the OIH is down $3 and the XLE is also lower, so not sure it will be a safe haven. One smart trader I know is shorting the sector as it is one area where traders can lock in profits.

The short term trading environment looks dismal even in spite of the 20% plus spike in the VIX/VXO tandem. Middle east tensions will probably get worse before they get better and what do you think will happen to Israeli soldiers who get sent to Iran? In addition, the North Korea/Iran issues will not go away as those leaders will only have unpleasant things to tell W and Condi in light of the pro Israeli U.S. stance.

Big Ben is on the hot seat next week and maybe he can have some upbeat commentary, or maybe inflation will come in tamer than anticipated and another rate hike will be a distant memory. Possible not probable. Also, second quarter numbers will be coming next week and reduced estimates for the second half may become a popular theme. All in all, SPX 1200 may be just around the corner.