$Market Closer$Oil Moving North Off Support

This afternoon was a little different. The Dow finished up 45.68 points, to 12594.03. While oil finished up after a 2-3 day pull back to bounce off of its support around $125.50pb to over $130pb.

The news is that the demand is slowing based on higher oil prices. Yet we are still living with threats like the one that exist in Nigeria and the Rebels attacking the pipeline. Along with hurricane season we think that threats to demand will increase over the next several months.

Tomorrow, at 2:30pm EST, Bernanke speaks. Not to mention the massive amount of economic information that will be released prior to him speaking. This could be a great reason for the Market to head South if Bernanke starts to speak about bank failures or keeping interest rates the same or raising them.

Financials have been breaking down the last few days and may show a positive sign in the morning tomorrow, and then turn in the afternoon. That could be one scenario.

Business spending is up and this is an extremely good sign that you do not normally see going into a recession. Plus, over the last several years, companies have put a lot of cash on their books.

DRYS finished up over 9% today. It might go to $130 by September.

Gold was down today.

We think the consumer is the key to the whole economic situation. And this might be a good time to be in cash to take advantage of another shoe to drop. The Market has shown strength since the Bear Stearns/JP Morgan purchase. The chance that the Dow might pull back to 12300, we feel is pretty good once everyone understands the regional banking situation, consumer inflation, and the tax on earnings oil might provide the corporations in the next 2 months.

Can our economy handle this pressure without having the Market react negatively?

Good Fortune from Trade-Equity.com!!!

$Market LunchBox$ DRYS is Bouncing North!

We think that with the Dow trading down currently <2:07> down 23 points to 12525, and in the mid-term in a range between 12,500 and 11,500, you really have to look for superstars in this market.

Yesterday, we discussed DRYS looking like it was ready to bounce. Today the stock is up over 6%.
We think it will go back to $116 and possibly to $130 per share.

And while overall Stocks is going back and forth from negative to positive today, Treasuries still remain out of favor. This tells us that the major money remains positive on Stocks. While the Financial sector is showing considerable weakness today(displayed in the XLF/SKF), the news today is clearly making note of how bad the banking situation is for regional banks in the US.

The number we keep hearing is 100 to 150 are going to fail over the next 2-3 years.

We think that this might open a door for a major client grab from Internet banks and larger banks. Think about it, gas is up, driving is down. Your bank fails as you read the news online and there is an ad running next to your news article. BINGO! This might be the first alternative for millions of people.

SYNO and TGH are showing extremely high volume today.

Good Fortune from Trade-Equity.com!!!

$PreMarket Buzz$ Durable Goods look Durable!

Positive news this morning, minus cars and planes numbers not looking so good.

All of the Equity Futures are up with 22 minutes to open. The Dow is up 39 points to 12592.

Oil is down $1.71 to $125.17pb. Gold and Silver are pointing down to open.

Something very interesting was announced by Dow Chemical today. They said they will raise prices 20% to make up for the losses due to fuel and energy prices they are incurring.

This looks like the first (sector) that will be passing along these cost directly, and adding to inflation across the board. We knew transports would have to do that, but if Industrials start show price increases in the area of 20%, it will effect many consumer products that are used daily.

Good Fortune from Trade-Equity.com!!!