Leaving For Vacation – Back next Thursday.

Reading the Tea Leaves

US Stock Indexes were up about @2+% in increased above average volume yesterday as oil prices fell. Over the last few weeks volume has increased when the market moved higher and decreased when it moved lower. Volume is the #1 technical confirmation factor. Therefore, it sure looks like the rally will continue.

Chart of S&P 500

Oil Rules

This stock rally is primarily based on oil prices moving lower. Oil prices moved 2.04% lower yesterday and for a brief time broke the support levels (see past Updates) While oil prices did close above $122 (support) it sure looks like there is enough momentum to carry them lower.

Chart of WTIC (oil)

Fearless Forecast

Going way out on a limb – When Updates return next Thursday markets will be 3 to 5% higher and oil prices down between $100 and 110. As Always Do Your Own Research Before Investing

Politics

McCain goes negative – Low Road Express is a NYT editorial today about Bush style fear mongering and going negative. No one is surprised about McCain running a negative campaign. What is surprising is that it has started so early and he is personally throwing the negatives. Usually the candidate’s surrogates handle the negatives.

Barr

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