Indexes a bit lower in small range day

Today the stock indexes extended the range down slightly, but overall the markets held firm after such a large drop on Friday and with sentiment turning very bearish. Volume was very light, as would be expected by the small range. The indexes basically came into balance when it was obvious that the range could not be extended. Short term momentum is now getting quite oversold, with the trend still holding slightly up. There’s not much else to say at this point. We’ll know shortly whether this balancing action today is just a pause before more downside, or if the selling is drying up and a reversal back in the direction of the still alive uptrend occurs.
Crude was higher again today. It looks like those DCR etfs will go off the board if they can hold crude above $111 for a few days. They still have a huge premium. I hope the people supporting ethanol are happy with all the misery they are causing in the rest of the world with rising food costs. Higher corn prices affect more than just corn flakes. Ethanol just doesn’t make practical sense on any level, other than for corn farmers and traders riding the ag momentum. There is better technology available and being developed. And while we wait there is better technology to get at the oil we already have in North America without lining the pockets of countries that hate us.
I put a new link in my blogroll. It is Mplay’s blog, and this link goes to a page with some interesting thoughts on trading. Check it out.

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