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The S&P500 bounced off of 1040/1050 continued with a close over 1088, indicating conviction in this rally. Doug Kass was on CNBC's Fast Money this evening citing that this market would most likely be rangebound (1080/1180) until the 2nd half of 2010. Even the always cautious Barton Biggs called the market very oversold, but the real market mover was China, saying it would not sell it's Euro bonds.
Yesterday Itz cited that the drillers, more specifically Transocean (RIG) was 'way oversold', it came out of the gate on the opening this morning up 8%, however gave some back as President Obama announced that the 30-day moratorium on new offshore drilling would be extended was expected, but his stand-down on 33 new rigs in the Gulf came as a shock to some industry watchers. The 180-day halt in drilling activity would imply 200,000 barrels/day of lost capacity or 37 million barrels. That along with the NOAA 8-14 seasonal hurricane outlook sparked a rally in crude oil, which is now closing in on $75. Itz recently suggested the ProShares Ultra Crude Oil etf (UCO) @ $8.75 rallied to close Thursday at $9.93 up 13.5% in 1 week.