The markets opened lower today, but a rise in the price of Crude oil pushed us higher. The markets are only down slightly from their highs of the year. Todays action makes me think that future inflation expectations are taking precidence over fundamentals. We could push to a new high sometime in the near future, but I urge investors to use extreme caution here and hedge your buy and hold positions. For those who day trade, look to short on strength and buy on weakness. Spread trades are a good idea right now. A combination of longs/shorts could work now because between now and winter, the market should move significantly one way or the other. Going long a leap strangle or straddle with options may prove a good strategy.
Technical indicators remain bullish, for now. For those looking to position trade to the downside, PSAR is indicating a sell with a stop at 1,005 on the S&P. The moving averages do not support this, I will give a heads up when we get a cross over confirming a safer sell entry.
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