We are entering critical time of day. Dow still up 300 but if it sells off meaningfully we will have a severe problem. Traders were duped la week ago when China was supposed to have announced a larger stimulus package. When that failed the market sold off 6%. If they feel duped again then short positions will be reestablished and they will just sit on them, knowing they can wait it out.
Should we get an afternoon ramp there are estimates out there for a 500 point rise in the Dow. Of course, at these rates that could happen by Thursday.
If the longs sit tight right here we may be OK. If not, and they sell into the close then we will not be OK. Not at all.
Petrobras (PBR) announced yet another find off the coast of Brazil. No estimates yet as to recovery opportunity but the company certainly is demonstrating a knack for finding traces of oil. Recovery of this and the already proven sites that have been announced make PBR one of more exciting energy plays. In energy am long PBR as well as XOM and CHK.
