Indexes traded in the smallest ranges of the year with added volume on some pricing. Oil and inflation still the items of market concern with Bill Gross of Pimco stating inflation has been understated for some time. No kidding? Oil executives on Capital Hill testified high oil prices were a result of the forces of supply and demand. They warned against governmental price intervention and said things would get better if they were allowed drill for oil anywhere they wanted. They do not guarantee that would bring oil prices down but it would insure their ability to continue taking governmental tax subsidies which is what they really mean by the forces supply and demand. These oil executives, like so many of the trading operations on Wall Street over the years, have become experts on taking, and when not taking, whining about not taking. In their minds, economic theory holds that if you take away the ability to take advantage of governmental support, one creates a whole lot of whining. The farming industry just got their 'taking' package in the form of a new Farm Bill. Good thing we avoided all that whining.
Bears hope to use the end of the three day weekend as the tipping point for much lower prices this summer. Bulls have had a slam and need the break to stall here or face a trending lower range bound dog.
