OptionEye Feb 28th
The market is still in short term bull trends for all three major commodities. Yesterdays lower open erased fairly soon as scares, fundamentals and anecdotal evidence turned things positive and on a relatively quiet day it is easier for the bulls to take over. There is an old trading saying that you should 'never sell a quiet market' because of just what we saw yesterday.
Oil is still the boogeyman and we are now sifting through research that is calling for oil to trade up to $130 or even $150. While this may not directly start off set off a recession, taxing the consumer at the pump on a weekly basis is not good.
We saw decent macro housing numbers yesterday only to be trumped by bad durable goods orders today.
We had some decent turnarounds in the market yesterday that I think may be difficult to repeat today.