OIL $100 again

Well here we go again OIL is @$99.60. What happened to the $75 we were suppose to see well I told you longer term you have to be a OIL bull as it is getting harder and harder to get crude out of the ground. Think about it! globally the world is in a peaceful situation and crude is flowing freely what would happen if we really get a war out of the Soviets, Iran, North Korea or a matter of fact whoever, Oil would be $150 in a jiffy. I personally have been planning for gas to be $5 at the pump so some time now maybe it will be sooner than later

New Plays

I still think we will be in a range in the DOW for awhile with the upside limited in the 12800-13000 area and on the lower side 11600-11800 area. What my senses and technicals tell me is that we should bounce from here. I would more than likely like to see this scenario as it would set up some better reward shorts on a push up to resistance. Currently making a list of stock which I believe will be great contenders on the next push to resistance as short candidates.
For now look for resistance on the S&P at 1408 then 1429.

Tuesday Feb 19th

Friday was a typical options expiration day as we were locked in a narrow range throughout the day. Stock prices did gap down and although a quick rally challenged the highs of the day early in the morn, rejection occurred there and we settled back to the lows. Again prices couldn’t break out either way and we closed practically unchanged.

With that behind us we could be set to continue lower via last week’s bear flag breaks. I might look at any rally as a good shorting opportunity providing reversals patterns set up. If we gap up big Tuesday at the open, I might get aggressive on fade setups. If we hold on and rally in the morning, I might look for a pull-back in the afternoon.

If we do close strong today we could be looking at a possible basing for a bottom, but I think a more likely scenario is that upside is capped and we break lower soon.

Good luck.