SPDR S&P 500 (SPY)

[livinginthelimelight]

Well, they decoupled Oil from SPY yesterday... Don't know how long that will last though. I think SPY will catch up within the next day or 2.

This move happening in oil is a technical bounce. It needed to happen since everyone and their mother was short. They need to burn the fur off the bears since it is such a crowded trade. That's why I think bounce to 38. I started buying it because oil broke the downtrend and was at such a steep discount to the 140 day sma. The 140 day is currently around 42ish. Oil could rally back to the 140 day (which would prob be around 40 by the time oil gets up there).

There could be fundamentals behind it as well, with the talk of OPEC looking to discuss output with other countries (notice how the US wasn't mentioned or at least from what I saw). If that garners more attention that will do nothing but help the price go higher.

I check out the UWTI board, but rarely comment. I had someone from that board send me a PM telling me I know nothing about trading and that I should buy DWTI (it was $400 at that point). I didn't even bother replying.