it seems to me that this price is unsustainable. I don' think Bush can stand another high profile bankruptcy..even if it is airline..under his watch. I think in the next few months, oil will settle between 30 to 34. I think even if it is talk and no immediate action...the market will look to price it in as future action...
that's the thinking anyway...i also thought today we would remain green. :)
it appears the dip in the mkts coincided with two events, the news on the apparent accidental bombing of a wedding in iraq and a sudden spike in oil around 2pm. CNBC has been saying OIL, OIL , OIL..but i actually think the bombing caused the spike in oil...
anyway...if that is the case, this is a reaction movement and would suggest we may make a run up again. That plus the 34/35 support from the large number of options should mean downside for the remainder of the week should be limited.
however, the one key component confirming any of these moves thus far is lack of volume...we really need a good volume day. until then, many traders are going to consider this as simply a bounce off oversold...
jmho
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