And after I stop scratching my head, I realize that a huge amount of foreign money is being cycled back into purchases of U.S. assets from equities to businesses to real estate. That is where the money is coming from for the most part.

Didn't that happen in the late 1980's, when the roaring but inflated Japanese economy produced the buyers of cheap U.S. assets? Right at the top of the market. Remember Pebble Beach and the Rockefeller Plaza deals? There is a lesson here somewhere.

The surge in oil prices over the last two sessions, from 86.50 to 92.22, has surprised me. Let's notice, though, that today's high once again is not confirmed by daily RSI momentum, which is a second warning signal that the intermdiate-term uptrend in oil prices is running out of "fuel."

Can prices continue higher? Sure, but let's just be aware that at some point probably sooner than later, oil prices will hit an airpocket and plunge like a rock into the $83.00 initial target zone. Anyone long oil here must be prepare for just about anything. Anything negative, that is, and any time now.



Taking one more look at stocks, even after today's pop from Microsoft, the QQQQ still cannot seem to claw their way above 54.00/20. And until that happens, I will hold my counter-trend long position (model portfolio) in the QID (UltraShort Q's).



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.