Hi there,
and welcome back to Stock Charts R US blog.
As the old adage goes, Sell in May and walk away...
Oil is pushing higher by the day and the stock market (and the economy too) is starting to feel the pinch. Couple this with an already weak financial sector and we have the makings for yet another seasonal top in the merry month of May. Hold off on any big purchases for the next little while and look for a test of the 130 area into June-July.
With regard to energy prices - exactly how high can crude oil can go is anyones guess. Parablic moves in commodities are quite common. They occur near the end of moves and can be quite violent. Crude supplies themselves are not dramatically changed and the seasonal trade in Unleaded Gas has come and gone. The only other market moving event on the horizon is the 60th birthday of Isreal and it would seem energy prices are being pushed higher because of this 'fear' event rather than on any solid fundamental news. 200 day moving average on July Crude is near $90/barrel - Oil Bulls beware!
They don't say 'Sell in May and walk away' for nothing.
Brian Beamish FMA FCSI
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