Watch the Energy Blowoff Playout

While we concentrate on trading and investing in the stock market, at the moment the energy market has taken center stage.  It is interesting that the crude oil and corn charts look much alike with both in blowoff stages.  As such we would not be surprised to see abrupt reversals in these two markets over the next three days. 

We watch four Ag related ETF’s, MOO, DJP, DBC, and DBA to get a good feel for the commodity sector as a whole.  All of those ETF’s peaked in the period between February 26 and March 13 and are moving back towards their highs but have not reached new highs at this time.

We plan to move to a flat position in the active stock portfolios this morning.   These portfolios are around 60 percent net short from the rally to 1390 in the S&P 500 earlier this week.  At the moment the market is trading around 1355. 

5:30 AM 4/10/08