Coals, Minerals, Natural Gas, Oil Drillers and Commodities remind us why they are the leading sectors. Crude Bounces Hard and Financials Add to gains

The Bulls took the market indexes higher with the S&P 500 gaining 22 pts to close at 1284, the Dow up another 200 points even to 11,569 and The NASDAQ reversing earlier losses to close at 1856. The rally was led the Coals, Miners, Agriculture, and Oil Drillers. The "Good Stuff" went up strong, along with the beaten down financials stocks holding their own and adding slightly to gains from yesterday.

The only trade I am sitting on is the USO August 99 calls, which are now trading at $5.60, 64% higher than my open price of $3.60. With Crude Retreating and breaking the trend line everyone (including myself) was calling for $100 a Barrel oil, and lower in the near future.

Ask yourself: Does my vehicle run on gasoline? I'm going to answer that one for your with a "Yes". I don't think the trend of decreased US Demand over the past few weeks is going to have that much of an impact on global prices. Many countries have no incentive to conserve Gas because it is dirt cheap and subsidized by their governments. With Gas in Venezuela at 12 cents per gallon, they have probably not cut back.

Here is a link from CNN to Global Gas Prices: http://money.cnn.com/pf/features/lists/global_gasprices/


RIDE YOUR WINNERS: I was tempted to cash these calls with the quick profit literally burning a hole in my pocket. However, I believe that Oil has more to rally, with crude closing strong at $127 a Barrel in Electronic Trading. I kept telling myself to be patient and let the market tell me when to exit. It takes courage to be a pig to ride your winners. Oink Oink. Happy Trading.