Oil Creeping Up Causes Markets To Pull Back

Oil traded around the flat line and even dropped lower after inventories were announced at 10:30am ET. However, just over the last thirty minutes, oil started to ramp higher again. The markets, which had been moving solidly higher, started to sell and come back in. The inverse oil trade lives on as anytime oil moves higher, the markets start to sell off. The SPDR S&P 500 ETF SPY hit a high today of $131.82 as oil hit its low of the day. As oil has spiked higher, the SPY has pulled back to $131.05, basically flat on the day. Technology stocks have been very weak of late. However, today they are catching a solid bid. Amazon.com, Inc. AMZN, which has been the weakest of all is moving nicely higher. Oil is and will continue to be the major key to the market in the short term. If oil spikes higher, the markets will sell sharply and if oil pulls back, the markets could easily trade back to their 52 week highs. Silver and gold are both neutral to higher today again. Yesterday, these metals hit new highs with silver hitting a 31 year high and gold hitting an all time high. The SPDR Gold Trust (ETF) GLD is trading at $140.30, +0.27 (+0.19%) while the iShares Silver Trust (ETF) SLV is trading at $34.06, +0.19 (+0.55%). Gareth Soloway InTheMoneyStocks.com