As I indicated earlier, this week I have been paying close attention to where the "big whigs" have been parking their money. Early indications seem to be that money is flowing out of tech, semis, housing and retail, and into commodities. Many commodity related stocks and ETFs have not only bottomed, but look ready to breakout from highs. For example, the Energy Select Sector SPDR, XLE, has made an 8 point move and is challenging all time highs at $59.50. A breakout over $60 could lead to big gains, as their would be no overhead resistance. However, failure at this level historically leads to a good shorting opportunity.
For those interested in playing commodities, check out this article by thestreet.com's Guy Lerner, and a thought provoking USO vs XLE comparison by Charles Kirk.