Oil price hysteria: despite their recent surge, oil prices remain far below their highs of just 3 years ago...

Oil Price Hysteria

3 Democrats apparently wrote President Obama a letter requesting he tap into the Strategic Oil Reserve to help ease rising gas prices surging because of surging oil prices.  
Yes, in the short term, oil prices (OIL @ 25.69, 2/24/11) have rallied some….



However, a longer term perspective shows that oil prices are far, far below their highs of just 3 years ago:



As someone living a country where we routinely pay about $6 a gallon, the idea of $3 a gallon gasoline prompting an emergency federal response makes little sense.

S&P 500 Update: Cashing out after nice advance to lock in profits

S&P 500 Update 2/24/11 (SPY @ 131.02):  Punching out.  It has been a nice, long ride, but I am punching out for now.   I maybe a bit early but we had two strong down days on very heavy volume after a very long advance.  I can always re-enter, perhaps at marginally worse prices, if the market rise resumes:



Technically, I should wait for the 20-day to get hit, but given the extent of the advance, am locking in sizable profits.  

S&P 500 Rally (SPY @ 131.97) Continues but looking a little tired...

Tuesday, February 08, 2011

The rally continues.  With SPY at 131.97, we have been long since 110, for a 21.97 point run since early September.  This is why it is so critical to take every buy signal and not to try to second guess the trend which is always smarter than you, me, and all the self-declared pundits out there.  Watch what they do, not what they say:



Some caveats:  the sell-off on very heavy volume in late January may indicate some distribution and the most recent break-out to new highs has not been on impressive volume.  This run looks a bit tired, but we should ride it until it tells us it is over.  Sell stop at 126.15.