Oil Well May Not Be Stopped Till August. Time To Buy Some Of The Battered Energy Stocks?

US government and British Petroleum warned that the blown-out oil well causing an environmental disaster on the Gulf Coast may not be stopped until August as the company began preparations on a new attempt to capture the leaking crude. And to add up, hurricane season begins Tuesday.

This is the state of mind of the fishing community over there:

"I was just sitting here thinking our way of life is over. It's the end, the apocalypse," said fisherman Tom Young of Plaquemines Parish on the coast. "And no one outside of these few parishes really cares. They say they do, but they don't do nothing but talk. Where's the action? Where's the person who says these are real people, real people with families and they are hurting?"

Maybe the bottom is near for BP plc (ADR) (Public, NYSE:BP), Transocean LTD (Public, NYSE:RIG), Diamond Offshore Drilling, Inc. (Public, NYSE:DO) and other oil services stocks. Speculators cannot wait that long to buy back these stocks. So probably they will sell off a bit more for a couple of sessions and then they will form a trading bottom and begin to move back up. That`s the way the market works.

Trading Thoughts.

"Most books on trading say that you only have to be right 3 or 4 times out of 10 if you cut your losses quickly and let your profits ride. That doesn`t work for me. I cut my losses quickly, but I take my winners just as quickly. I need to be right 7 or 8 times out of 10"

Marty Schwartz, Pit Bull

What I really think its important is to find a personal style that both fits your personality and your trading account. By that I mean, you need a profitable trading strategy that matches you. The winners can be bigger than the losers, or vice versa. And you can trade with the trend or against it. I know winning traders in all those 4 quadrants.

And they change their styles as the market changes its dynamic. So do I.

Dow Jones Had The Worst Monthly Drop Since 1940

"May was a great month if you're a bear. By its close the Dow's monthly loss totaled 8%; that's the worst May drop since 1940."

in CNBC.com

I took advantage of it and my account printed new all time equity highs. I hope you did too. This was a fantastic market to trade.

I was asked to write a review of Trade To Win - proven Strategies To Make Money from Thomas L. Busby. I will let you know my thoughts about this book.

I am also researching some long/short daytrading strategies with fantastic results so far. US markets are closed today, so most of you will not be trading today. I will be back to my trading desk tomorrow.

Related: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), Dow Jones Industrial Average

Dow Jones 7,000?

Source: Deutsche Bank’s Jim Reid

The price graph displays the inflation adjusted Dow Jones 30 since 1900. Reid used two different trend lines: The trend from 1900-2010 and the trend from 1900-1994.

Watch what happened in 1994 when markets completely deviated from its long term trend. If the new long term trend is not justified, maybe the Dow Jones is worth only about 7,000 points.

We as short term traders are much more concerned with the next 100 points on the Dow Jones or the next 10 points on the S&P 500 than the next 3,000 points on the Dow. Even though I thought this was worth sharing.

There will be a few great matches on Roland Garros today. Stay tuned.

Related: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) and SPDR S&P 500 ETF (Public, NYSE:SPY)

Dave Landry: This Market Is Too Hard To Call On A Day To Day Basis

I was listening to Dave Landry`s Market in A Minute and when he said, "this market is too hard to call on a day by day basis", I thought to myself, "Well, this is the best market we have had in a while". So I am taking advantage of this volatility and this erratic market patterns fit my trading style perfectly.

As the futures markets are a zero-sum game, when some traders are winning others are losing. This is my market. I am thriving or booming if you prefer.

He mentioned the possibility of an opening gap reversal. Here is the link to his daily comment.

If Housing Double Dips Or The Consumer Tightens Substantially The Strong Bank Balance Sheets Will Once Again Become Fragile

Here is an interesting macro thought I have found on the Pragmatic Capitalism:

"So, while the banks are stronger (a relative term) it matters little as the consumer continues to struggle. We’ve basically kicked the can. The continuing weakness across the private sector puts the banks at substantial risk of future weakness. If housing double dips or the consumer tightens substantially the strong bank balance sheets will once again become fragile... Monetary policy will be shown for the farce that it is."

There is always interesting stuff coming out of the TPC, so here is the link to that superb website: The Pragmatic Capitalism.

Anyway, that is just a thought. We are short term traders and like surfers, we do not need to understand the full dynamics of waves to surf them. Or do we?

Playing The Market Both Ways

Trading has been somewhat erratic in the last few trading sessions with the market up one day, down the next and with some dramatic intraday reversals. I feel like fish in the water in these markets and I played the market both ways on yesterday`s session.

I am looking at the big up surge in the futures overnight, so we are likely going to have another wild ride on the US markets. So, fasten your seat bealts!

I was reading some excerpts of a recent Marc Faber conference in Manhattan and it almost seems like he is preparing for war,

"In war, cities will not offer safety because one can get bombed, water may be poisoned, electricity shut off. Instead, one should buy a house in the middle of nowhere or on the countryside"

I have been watching some games from Roland Garros and I may go there for the weekend to watch some games live. I am backing Federer to win again.

What`s Being Said On The Oil Trading Desks

"A bearish report could tip us over the edge. Bullish figures have less opportunity for creating high drama, but a clean sweep could change things"

Peter Beutel, of Trading Advisory Firm Cameron Hanover

Related: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL)

Technical Selling Programs And Stops

"With each successive fresh low, additional technical sell programs or stops are activated, thereby sustaining the price plunge"

Jim Ritterbusch, president of trading advisory firm Ritterbusch & Associates

The Reason You Get Killed Investing in Commodity ETF`s

"Most commodities are in contango more often than not, effectively costing investors the spread between the nearby future and the more distant future every time the position is rolled."

Niels Jensen in “The Commodities Con”

This is why you get killed buying commodity ETF`s like United States Natural Gas Fund, LP (Public, NYSE:UNG), United States Oil Fund LP (ETF) (Public, NYSE:USO) and PowerShares DB Agriculture Fund (Public, NYSE:DBA). Even if the price of the commodities rise, they may not rise enough to offset the rollover costs or the contango. And if commodity prices go down you have a double loser.

Markets are selling off pre-market. This time I am not taking part of the action. I was expecting for a bigger recovery rally to consider shorting again. I am on the sidelines getting ready for another operation that will keep my fantastic trading sequence alive and kicking.

Have a great trading day.

Trading Tip: Take A Pause After A Good Run

A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate with working smarter. In fact, sometimes is the other way around.

I have learned through the years that after a good run of profits in the markets, it`s very important to take a few days off as a reward. The natural tendency is to keep pushing until the streak ends. But experience has taught me that a rest in the middle of the streak can often extend it.

Martin Schwartz, in Pit Bull

I totally agree with Martin. I am taking a bit of a rest after a great winning sequence. I do not have the need to rush things. I am sitting on my hard earned cash.

Have a great trading day.

S&P 500 Index Drawdowns Since The Beginning Of The Bull Run

Take a look at the drawdowns on the S&P 500 Index since the the market bottom in March 2009:


The current drawdown is by far the most agressive. David Rosenberg from Gluskin Sheff wrote this weekend that,

"Two critical data points to watch for — the May 6 flash-crash intraday low of 1,065 on the S&P 500, followed by the 1,044.5 low on February 5. If these don’t hold, and the bulls need these levels to hold, then another leg down to or through the 950-970 levels is likely."

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), PowerShares QQQ Trust, Series 1 (ETF) (Public, NASDAQ:QQQQ)

Oil Outlook: Hypervolatility To Continue

"Continued hypervolatility should be expected this week, with nearby crude futures possibly spiking into the 73-75 dollars per barrel zone briefly, before resuming their downtrend toward the mid-60`s region"

Jim Ritterbusch, President of Trading Advisory firm Ritterbusch & Associates

One Sided Market. Buying Western Refining (WNR).

This has been a one sided market, going north fast. I placed a few shorts intraday, and I am sitting on cash again. I am expecting a rebound at the open, but the market is so volatile that he have to trade what we see and not what we expect to see. Lightning speed and no hesitation is the key to profitability in this environment.

As you know I am so busy trading that I do not have the time to post and moderate comments as I used to. But I hope you are all having a good run as these markets are paying off handsomely.

One stock that caught my eye yesterday was Western Refining (WNR). It rose on a liquidation day. Western Refining (WNR) has been outperforming the market since its earnings release and I think the line of least resistance is up. This stock can double in a few months time. I bought a line and I will add further if it acts right.



Interesting research from Bespoke Investment Group:

7% of S&P 500 Stocks Above 50-Day Moving Averages

Hugh Hendry Jumps From Deflation To Hyperinflation

"Following Europe’s debt crisis it is now commonly accepted that the magnitude of the financial problems confronting the world economy are so great that in all likelihood we will be confronted by a hyperinflation allowing sovereign debts to be paid off in worthless flat currency"

Hugh Hendry, Hedge Fund Manager

Crude Breaks 6 Day Losing Streak

Crude futures snapped a 6 session losing streak boosted by the Fed`s improved outlook for the economy even as concern grew about Europe's recovery.

But gains were limited to the front month contract (for June delivery), which expires Thursday. The contract settled 0.7 percent, higher at 69.87 USD a barrel, while much more active July futures settled 0.3 percent lower at 72.48 USD a barrel.

Futures had ended lower in 10 of the previous 11 sessions, in a nearly 20 USD a barrel plunge. Is it time for a reflex rally?

The answer is probably not in oil itself, but on the risk trade. Anyway, a 2 to 3 dollar per barrel rally is probably in the cards.

Related: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL)

Financial Crisis, Chapter II?

“There is now a massive re-leveraging of the public sector, with budget deficits on the order of 10 percent of gross domestic product in a number of countries. History would suggest that maybe this crisis is not really over. We just finished the first stage and there’s a risk of ending up in the second stage of this financial crisis.”

Nouriel Roubini in Business Week, May 18

Are we going to test 1,100 on the S&P Futures today? Europe is selling off sharply but with this volatility big reversals happen. Be flexible and ready to reverse from short to long on a possible short squeeze.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

The Bounce Was Short Lived But Profitable.

I closed my oil futures long position and I am sitting on cash. That was a short lived bounce...

My trading is firing on all cylinders again.

I have promised to find a better trading joke for today. Here we go,

"A young stockbroker decided to take a day off and visit some of his professors in his old school. When he made his way into the entrance he noticed a dog was attacking a small child. He quickly grabbed the dog and throttled it with his two hands. The next day the local newspaper reported the story with the headline, "Valiant student saves boy from ferocious dog". The stockbroker called the editor and strongly suggested that a correction be issued and that the paper will tell the readers he was a successful Wall Street broker and not a student. The next day the newspaper issued a correction and the headline read, "Pompous stockbroker kills school mascot"."

Good enough?

I Am Long Oil For Tomorrow`s Session

I bought oil futures near the end of the trading session as I expect a short term bounce tomorrow or in a couple of days.

I have been on the sidelines sitting on my hard earned cash. I am getting back to work now.

I was looking for some trading jokes, but the best one I could find was "a market analyst is an expert who will know tomorrow why the things he predicted yesterday didn't happen today!". I will try harder tomorrow to get you a better joke.

Have a great trading day.

Stock Picking: Paulson and Soros are betting on Boston Scientific (BSX)

Time For A Reflex Rally?

European shares are rallying, benefiting from the lower euro. A lower euro currency is the best thing that can happen to the Eurozone because they rely heavily on exports and have little to no inflation.

But the other side of the coin is, a strong dollar is bad for american corporate profits and deflationary for commodity prices. Are we going to witness a decouple in stock market performance? Can european shares rally while american stocks trade sideways or even drop further?

I am still on the sidelines but I am expecting a reflex rally in the next couple of days.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

50 Dollar Oil? I Thought These Ultra Bearish Estimates Were Part Of The Past.

“If oil gets down into the $50s and stays there for a while, I think there will be more pressure from OPEC to be more compliant.”

James Janoskey, Head of Credit Suisse’s European Oil & Gas Group

Related ETF`s: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL), PowerShares DB Oil Fund (ETF) (Public, NYSE:DBO)

Jesse Livermore: Words Of Wisdom

"Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul. "

Jesse Livermore, Reminiscences Of A Stock Operator

There is a new annotated edition of Reminiscences Of A Stock Operator. Check it on Amazon,


"Reminiscences of a Stock Operator Annotated Edition [Hardcover]
Edwin Lefèvre (Author), Jon D. Markman (Author), Paul Tudor Jones (Foreword)"

Trichet: Europe's Economy In Its Deepest Crisis Since World War II

The President of the European Central Bank was quoted Saturday as saying that he still sees Europe's economy in its deepest crisis since World War II, or even World War I. German news weekly Der Spiegel reported that Jean-Claude Trichet said that since the beginning of the financial crisis in 2008 "we have experienced and we are experiencing really dramatic times."

In an interview to be published Monday, Trichet said the recent exacerbation of the eurozone's debt crisis had provoked a market reaction similar to that at the height of the global financial crisis in 2008: "The markets didn't function anymore, it was almost like in the wake of the Lehman (Brothers) bankruptcy in September 2008"

Closed My Shorts. Sitting On Cash Again.

Please read this fantastic analysis on the euro currency situation:

"It looks to me like the market is moving beyond the Greek bailout sooner than I expected. The sharks are coming for the Euro. They see a wounded animal and the market is beginning to realize that there is no good long-term fix besides a substantially weaker and/or potentially dead Euro. The uncertainty this could cause in the coming months is too great for me to fathom. The EU has gone “all-in” with a very poor hand. The market will eventually call their bluff and when it does it will not be pretty."

in The Pragmatic Capitalist

I have closed my short positions and I am sitting on cash again. I am having my best trading sequence in more than 18 months and I am finding myself at a new all time equity high. Life is good.

Have a nice weekend.

PS: check Art Hogan`s stock pick for the next week

A Note On Inflation. Placing A Small Short Line.

An interesting note on inflation from Pimco`s El-Erian:

"Extensive money printing by central banks to buy securities in emergency measures, such as those the European Central Bank recently announced to stabilize euro zone government bond markets, will ultimately stoke inflation.

This potential evolution from disinflation to inflation will likely proceed at different speeds in different parts of the globe. It is already well in train in emerging economies and will remain so."

Mohamed El-Erian, CEO and co-CIO of Pacific Investment Management Co. (PIMCO)

I am opening a very small short line on the Emini S&P Futures with a tight stop. I have a 1150 target for this trade and I am placing the stop around 1180. After a good run, I am trading light. I took a few days off and I will spend a few days at my beach house.

I am trading via my iTWS application, on my IPhone. I highly recommend the IPhone for trading. Fast, user friendly and you can even play a game or listen to your favourite track while you place your trades.

Have a great trading day.

Related stocks and ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), Interactive Brokers Group, Inc. (Public, NASDAQ:IBKR), Apple Inc. (Public, NASDAQ:AAPL)

Markets Undecided. Still On The Sidelines.

I am still sitting on the sidelines. Markets are undecided and I am not sure if the sell off will resume or if this was just a violent wash out and markets will resume the uptrend.

I like to be on the sidelines because I can always read markets better when I am out of positions.

I will leave with an interesting quote from a professional trader:

"When you are starting out, it is very important not to get too far behind because it is very difficult to fight back. Most traders have a tendency to take risks that are too large at the beginning"

Gary Bielfeldt

Have you listened to my last music suggestion? If you didn`t here is the link again for Kruder and Dorfmeister myspace. A very good alternative sound.

Have a great trading day.

Closed All Positions. Sittting On Cash After My Best Trading Sequence Ever.

I have closed my long Ibex 35 Futures and all the stocks I have bought on Friday.

I am sitting on cash and do not plan to commit capital to the market (long or short) for a couple of days. I need and deserve a trading rest after one of the best trading sequences of my carreer.

Today I suggest a visit to Ferrari`s Youtube Channel. Maybe you will see me at a Ferrari dealership near you soon.

One of you emailed me saying that I traded better with the comments section disabled. I think he is right.

Have a great trading day.

Ibex Futures Are Rising 10 Percent. I Will Have My Best Trading Day Of The Year.

Its looking very good for me.

Ibex Futures up 10% and S&P Futures up 4%. I will make a killing today on the long side.

I bought into Friday`s weakness. As Jim Rogers often says, we should always buy panic.

European Stocks Posted The Biggest Drop In 18 Months

European stocks posted the biggest drop in 18 months as concern grew that the region’s leaders will be unable to contain the spiraling government debt crisis.

European leaders have approved some emergency measures over the weekend to stabilize the euro and financial markets so I think I will be "lucky" on Monday. As you know I reversed from short to long on Friday`s session.

As Jim Rogers says we should always "Buy Panic". That is what I did.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), iShares MSCI Spain Index (ETF) (Public, NYSE:EWP), iShares MSCI Germany Index Fund (ETF) (Public, NYSE:EWG)

Closed Remaining Shorts And Reversed. SandRidge Energy (SD) And Western Refining (WNR) Were Some Of My Picks.

Today I closed the remaining shorts and I reversed to a net long position. I bought Ibex 35 Futures taking advantage of the spanish rebajas and picked some old familiar stocks at firesale prices as SandRidge Energy (SD) which has disappointed on the headline earnings report and plunged 7%.

Tom Ward, SandRidge Energy (SD) founder and CEO is trying to make the company flexible, betting more on oil exploration to make up for deteriorating fundamentals for natural gas exploration. They recently bought Arena Resources, an oil exploration company and SD stock drifted lower to 6 USD per share. I am beginning to acummulate this stock again.

But my biggest position now is right on the eye of the storm. No, I did not buy greek shares. I bought spanish stocks via Ibex 35 Futures. In the last few weeks the Ibex 35 Index plunged from 12,000 to an intraday low of 8850. That is quite a sell off and the Ibex 35 is now approaching its March 09 lows. I am establishing a medium term long position in spanish stocks with lots of room to add on further weakness.

Same on SandRidge Energy (SD) and on Western Refining (WNR). I am buying on weakness and will further accumulate if they keep selling off.

Its was a fun and profitable week and I am looking forward to trade next week. For now, I will take a well deserved rest in my beach house.

Have a great weekend.

PS: I am too busy during trading hours to moderate comments and that is the reason they are temporarily offline.

British Election Mess. Time To Buy The British Pound At Firesale Prices?

There seems to be big uncertainty regarding yesterday`s British Elections.

Is it time to buy a few British Pound at firesale prices and take advantage of all this mess?

Today is going to be another wild day. We have the British Election mess, the US Employment Report, the german vote on the greek aid package and the debrefieng of yesterday`s 1000 points plunge in the Dow Jones Index. Is it enough to offer us a volatile and profitable session?

I am taking a look at the Ibex 35 Futures. They are testing 9,000 points, down from 12,000 just a few weeks ago. Spain is in rebajas.

A 1000 Point Drop? I Thought I Would Never See That. (Comments Are Open)

What about that?

I just had closed my shorts and I was wondering if I should play a rebound when the market started to tank 300, 400, 500, 800 points...

I played the rebound and had a quite remarkable day. What is next? I don`t have a clue for now...

I have opened the comments section for this quite extraordinary event.

Bears Are Partying.

I closed the oil futures shorts earlier today and I am closing the Dax Futures for now.

I think we can have a short covering rally tomorrow.

Don`t forget the germans will vote the greek aid package tomorrow. It will be a very volatile day, again.

Is it time to buy some Euros at firesale levels? The british election will also move the British Pound...So, all in all this is a fantastic market to trade.

I am having a great (and profitable) time.

Oil Below 80. Time To Close Shorts For Now.

Markets seem to be stabilizing a bit. S&P Futures are holding up pretty well.

Lets see how it unfolds through out the day. I am lightning my short positions but I am ready to short again if markets weaken.

Have a great trading day.

ECB Meeting Will Be A Market Mover

Watch ECB`s rate decision and conference call at 7.30 ET. It will certainly be a market mover.

Its been a while since my last music suggestion, so here we go: Kruder and Dorfmeister, a very good Drum and Bass, Electronic sound from Austria.

Will Greece Be The Lehman Of 2010?

"Stocks continued their declines today as fears over European sovereign debt continued to weigh on the market. The S&P 500 lost 0.66%. Volume was once again very heavy and breadth very weak at 4:1. High beta continues to get hammered as the Nasdaq falls 1% and Russell 2,000 declines 1.5%."

in The Prag Cap

I am still short Dax Futures and enjoying the ride. Will Greece become the Lehman of 2010? Its getting closer and closer...

Have a great trading day.

Is This The Beginning Of A Bigger Sell Off?

NYMEX crude oil futures for June delivery settled down 3.45 dollars per barrel at 82.74, snapping a four-day rally. The settlement price was the lowest since April 27, but the single-day drop was the biggest since February 4.

Stocks sold off across the board. I am sitting tight on my Dax Futures shorts.

Its time to post another bearish cartoon...

Contango Is Still Very Elevated. Oil Is Now A Short Selller`s Paradise.

I am taking advantage of this huge contango to add to July and August Crude Oil Futures.

This is short sellers paradise because prices are moving lower and carry costs are huge for longs. So, shorting oil is now a very profitable carry trade.

Related ETF`s: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL), PowerShares DB Oil Fund (ETF) (Public, NYSE:DBO)

Bullish On The Refiners.

Refiners have been acting strong lately. Tesoro Corporation (Public, NYSE:TSO) rallied almost 4% yesterday, while Western Refining, Inc. (Public, NYSE:WNR) surged 3.2%. I am bullish again on the refiners after being in and out of these stocks a few times late last year and in early 2010.

"Refiners probably raised operating rates by 0.1 percentage point. Processing runs were previously at 88.9 percent of capacity, the highest since July 2008. The API will release its own supply data at 4:30 p.m. local time in Washington D.C. today."

in Bloomberg

Better margins and the prospects of industry consolidation will keep these names well bid. Other important names in this space are Valero Energy Corporation (Public, NYSE:VLO), Sunoco, Inc. (Public, NYSE:SUN) and Frontier Oil Corporation (Public, NYSE:FTO).

Oil Prices: Implications Of The Spill

"So far the implication of the spill is that drilling may be impacted down the road, while near-term contracts are still being pressured by supply surpluses"

Jim Ritterbusch, President of the Oil-Trading Advisory Firm Ritterbusch & Associates

Related stocks: Transocean LTD (Public, NYSE:RIG) and Diamond Offshore Drilling, Inc. (Public, NYSE:DO)

Fadel Gheit Says 60 Is Fair Value For Oil

"I really think the market is overreacting. Demand is still very weak. Oil prices would be fairly valued at 60 dollars a barrel, as speculation—not demand—is what has driven them toward 90."

Fadel Gheit, Managing Director and Senior Analyst at Oppenheimer

Though Gammel said he sees oil holding steady at near 85, he doesn't think it will top 100 until 2013. Gheit also believes if crude did reach that high in 2010, it would be devastating to the healing economy.

Related etf`s: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL), PowerShares DB Oil Fund (ETF) (Public, NYSE:DBO)

BP`s CEO On Offshore Drilling.

“If we deal with the situation in a way that minimizes the environmental impact, it will cause some debate. If the environmental impact is serious, as a consequence there won’t be much if any extension of offshore drilling.”

BP Chief Executive Officer, Tony Hayward

Related stocks and ETF`s: Transocean LTD (Public, NYSE:RIG), Diamond Offshore Drilling, Inc. (Public, NYSE:DO), United States Oil Fund LP (ETF) (Public, NYSE:USO), BP plc (ADR) (Public, NYSE:BP)

ISM Prices Component Rises To 78.

"On the downside, prices rose to 78 – not a good sign for the easy money crowd. All in all, manufacturing continues its very positive trends."

in The Pragmatic Capitalist

China Keeps Tightning. The World Keeps Ignoring It, Again.

Chinese equities are off 12 percent year to date and just as we saw at the 2007 highs and the 2008 lows, U.S. equities are largely ignoring the leading indicator that is China. China was the fisrt stock market to break down, and the first to make a bottom and rally in November of 2008.

This new chinese tightning in bank reserves is bearish not only for chinese equities but for stocks worldwide.

Marc Faber even added today, “The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months. The market is telling you that something is not quite right".

Euro Currency Trading Down When It Should Be Trading Up. Interesting Divergence.

"Interesting divergence in equities and forex overnight. The news of the Greek bailout is providing no support to the Euro as the currency has now tanked after originally trading 0.35% higher on the Greek bailout news. It’s quite clear that investors are feeling less than reassured about the future of the Eurozone on the back of the bailout."

in The PragCap

This is Euro bearish in my view.

Related: PowerShares DB US Dollar Index Bullish (Public, NYSE:UUP) and PowerShares DB US Dollar Index Bearish (Public, NYSE:UDN)

Oil Futures Trading Near The 2010 High.

Crude Oil futures are trading at a 3 week high, bolstered by restored confidence in the global economic recovery and the potential interruption of crude imports to the U.S. Gulf Coast by an oil spill.

Light, sweet crude for June delivery settled up 98 cents, or 1.2%, at 86.15 dollars a barrel on NYMEX, just below the 2010 settlement high of 86.84 dollars a barrel on April 6.

Oil prices rose for a third consecutive session.

Related Etf`s and stocks: United States Oil Fund LP (ETF) (Public, NYSE:USO), iPath S&P GSCI Crude Oil Total Return (Public, NYSE:OIL), Transocean LTD (Public, NYSE:RIG), Diamond Offshore Drilling, Inc. (Public, NYSE:DO)