Relief rally (5/18/2011)

Market is in relief rally mode today leading by commodity related shares. S&P's inverse H/S break out was failed. Now market goes back to retest the neck. Fail to break out again indicates further weakness is down the road. The trading reference is S&P 1318 (yesterday's low).

Silver and Crude oil are likely to trade in a range. Break either side of the range is not likely to hold too long. I would sell this bound in 2-3 days since US$'s A-B-C counter rally doesn't seem to be over.

Short term strategy should be sell the rally, buy the dip. Long term strategy should be concentrate on high dividend paying stocks (yield is important).