OIL SLICK and JIGGY DOW

Click to enlarge, then click again in lower right corner for orig size.

COP briefly below long standing support line as I have drawn, and another down day dooms it to close beneathe it.

Oil on the NYmex $58.70 as we speak, why the tumble? Even as fears and threats of production cutbacks come from some OPEC members, did not support price today!

Oil rose with stocks as did gold, and commodities in general, as demand grew with economy, so now as commodities PLUMMET and stocks still head upward this is seen as BULLISH development. Consumers will HAVE MORE MONEY IN THEIR POCKET to spend on frivalous items.

Don't mention that it takes 30-50% of their income to rent or buy orthat MANY things cost more now, not just gas for the auto.

Housing is coming in for a soft landing? maybe so, but Home Depot etc are laying off, CHallenger reported today 100K job cuts announced some 40% above recent stats. We are JUST feeling the fallout from the housing slump would be bubble that popped.

WHO is talking about how much oil and energy companies were adding to the huge SPX profits being reported? Stocks should fly as earnings momentum is taking blows to the head?

Even with pullback in rates recently many mortgages are being reset and going up substantially, more than the measley $10 per fill the drop in gas is associated with.

Did you know as the DOW was making its run today at a NEW ALL TIME CLOSING HIGH that the volume of stocks declining was greater than those rising?
http://finance.yahoo.com/marketupdate/overview according to YHOO FINANCE we had 51% down volume!!! does that strike you as odd?

My take is that we are ever narrowing the amount of stocks participating in this rally and this is NOT a bullish development IMHO

This MUST change or the market will surprise many, for now who is worried with new high that it isnt going to continue?

Anything is possible, all we can is look at probabilities, and in my mind, as each leadership group has come forward and then gotten CRUSHED, I will take my 5% CD's and 4.5% CASH MM'S and call it a day.

The next move to surprise is coming to the Bear side. IMHO

Duratek