Today we retested the 1080 area on the S&P 500. We need to pay attention to what happens next. If we blow through this resistance, like we have done to the last 3 or 4 resistance areas, the trend should continue to 1100. Watch the price of oil and the value of the U.S. dollar. Oil is at a triple top around $74 a barrel. Triple tops almost always break out to new highs. If it does, we could see a run to $90 a barrel. The U.S. dollar is sliding, but it has managed to form a double bottom. If this double bottom holds...and it begins to rally, you will see oil retreat to levels below $74. Since oil and the dollar have an inverted relationship right now, we could get breakouts on both. Oil would continue the uptrend and the dollar would continue the downtrend. Be ready with your trades. The futures market should give you a clue before the market opens. I'm loaded up because I'm confident that Oil is going higher. If you want to be conservative...and I wouldn't blame you based on the last time I got real confident, you can wait for the breakout. There will still be money to be made when it breaks out. Trade your strongest energy stocks. APA, APC, EOG, CHK, NGS, ERX or XLE (ETF's), NOV, DVN, KWK, HAL, DO, and FSLR. I'll even look at AAPL for one more move up. I know...they aren't an "energy stock", but they do have a lot of energy in their trend. That's got to count for something.
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