Oil is currently trading above $100 per barrel. The catalyst being the unrest in Egypt with fear that the Suez canal could be closed for traffic.Markets around the world are reaching new highs due to strong earnings results and better economic statistics.
The recovery has gained traction and interest rates are low, which is beneficial for stocks.
We've had two fuel price increases with a third one looming at the end of February, which looks to be the biggest one so far. It won't be too long for inflation to start rising and thus interest rates to start rising too.
It looks like we've hit the bottom of the interest rate cycle for now with an increase in the prime lending rate on the cards during the second half of 2011.
Wait for pullbacks to go long. We're in a very strong bull market and going short is a definite gamble.
Safe trading
