We took some profits in Red-Hot Commodity ETFs on Friday. Was that a smart move? We'll find out. I think oil has shot up so far, so fast, it should go back and test at least its $120 support level before heading higher again. Below that, there is strong support around $110 and $100.
I sent Mike Larson this bond-oil chart this morning and asked him why T-notes and oil are moving higher together. He replied: "The inflation vigilantes are on vacation."
It sure seems like gold is leading oil lower. Could gold retest 850 and maybe even 800 before heading higher again?
