Options Wonderland

[*~1Best~*]

Dollar & OIL: Yes, it is the intraday support as shown on the 60m chart. I will be carefully observing tomorrow price actions.

Also, I commented on OIL $55 as a meaningful support since Jul 06 high near $80 when I noted the LT resistance. Since then, Oil traded to my target $55 during the last option expiration Friday which noted on CS and now Oil bounced from the $55 Support area and traded higher.

Also, as we have noted, DOLLAR was falling dramatically since last week and it was again trading down today, to below the support as shown on the daily chart. Hence as commented, the falling dollar, rising oil price, and WMT sale news prompted the profit taking sell off that we were looking for. This is healthy price action since we didn't have a meaningful pull back since Jun-Jul 2006 bottom which is almost 20% rally. Btw, I called the Jun-Jul 2006 bottom on CS while all other posters disagreed, that is the reason that they are all upset. But I noticed that you saw the same as what I saw.

Thank you

Best Wishes