Once again we have oil prices (+$1.40) climbing sharply along with equities, which purely is a function of market liquidity -- that is, the re-entry of market liquidity. Central Bank infusion has alleviated the immediate real or psychological need to jettison commodities to raise cash. From a technical perspective, oil and the US Oil Trust (AMEX: USO) were overdue for a recovery rally into the Thurs-Fri lows around $54 (basis the USO).

This recovery bounce should pop to 55.00-56.00 prior to needing a rest.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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