The Final Charge Tomorrow?

The Dow closed only slightly higher today, which is to be expected after such a huge run up yesterday. The bears were largely in control for the first half of the morning before the bulls fought back and brought major indices back to close slightly higher. All these happened along with mixed economic data and earnings release. Jobless claims and leading indicators both turned in inline with expectations while the Philly Fed turned in worse than expected. All in all, a draw day. Oil continues to make new high while gold continue to come under some pressure. The scenario that I have been painting since last week continues to be. I would expect a full scale breakout to occur along with a sharp correction in oil prices. Oil may be scarce but not scarce enough to justify a bubble, and yes, what you are looking at now is definitely an Oil Bubble.

April options expiration is tomorrow, so those of you holding April stock options should take note. It is definitely going to be a volatile day tomorrow as well. I don't think we will see a full scale breakout on a Friday and this could be a good time to put on some protection for your biggest positions ahead of the uncertain weekend.