Signs of Trouble?
5/1/2014 5:52:44 AM
Good morning Traders,
As the markets hang up near highs, let's look at a bullish sign:
Unless the market is going to enter a much deeper bearish environment, we would expect this indicator to bounce back up towards highs.
I also wanted to follow up on our oil discussion yesterday. We are in USO PUTS in our Oil Options Trader, here is one of our indicators:
This building of oil inventories can be a bearish sign for the price. And oil as a trading vehicle can really trend. So we could see oil head lower for a while once prices start to break.
In the short term, oil is getting extended, but that is how most longer term sell offs start. So we will see how this plays out.