Price Headley is the founder and chief analyst of BigTrends.com, which provides daily stock and options recommendations and education. Timer Digest recognized Price and BigTrends.com among the Top 10 stock market timers for 2000. Price has been widely quoted by Barron's, CNBC, The Wall Street Journal and USA Today. Price is also the author of the new book, Big Trends in Trading: Strategies to Master Major Market Moves.
Since September when the Federal Reserve started a series of rate cuts, a barrel of oil jumped from $70 to $130, a rate of increase far above normal and arguably a bubble. From that point on, options traders have been betting on trend continuation or top reversals.
Transportation stocks have been among the top performers of 2008. The outperformance of the Dow Jones Transportation Average (^DTX) has continued in May, meriting further examination.
The S&P 500 Index ($SPX) closed above the key technical and psychological 1400 level on Thursday, and confirmed with another close above that level on Friday. Where do we go from here?
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