Oil U.S. Light Crude Futures ($52.52)

For months I wrote about oil stuck in the $60 area, and it obediently traded in a range between $55 and $63. It was short term oversold at $55 as I saw it, so I was taken by surprise by the thump to $50 the other day.

Now it's so oversold it looks a bit like a slingshot pulled out past its breaking point. I'm looking for a sharp bounce here, just to get back into the trading range (straddling $60).

Natural Gas U.S. Futures ($6.18)

Natural Gas has been extremely weak since it passed its $9 seasonal high in early December. I'm still on the sidelines, but now watching for signs of a meaningful short term low, that could set the stage for further intermediate term recovery.

It's wait-and-see, but I suspect that we won't have to wait long to witness the demise of short term selling pressure.

Market Comment (S & P 500 1409)

The other day in a blog I said that I assume that we are passing a short term high in an intermediate term uptrend channel for markets in general. I'm expecting a meaningful correction here, and it's already showing up in Canadian markets.

I have repeatedly commented in recent blogs to the effect that Oil is hanging on by its teeth in the $60 area. It's not beautiful, but it's interesting because it has already seen a significant correction, so may be more defensive than the rest.

I have said that I believe that "cash is king" until a general market short term correction comes to pass and goes to completion.