Goldman Upgrades Outlook For Oil Prices

The market is up slightly in early trading, but the action is mixed. Energy is getting the biggest bounce following yesterday's selling, as commodity prices rebound.

The dollar is lower today, which is helping boost commodities. Oil prices are up near $99.50, bolstered by a bullish call from Goldman Sachs, who sees Brent Crude prices hitting $120 this year and higher next year. Gold prices are also higher, trading above $1525.

The IPO hype is back in effect today, with Russia's Yandex (YNDX) coming public. Anytime you label something "the Russian Google", you are bound to attract some hype.

Asian markets were slightly higher overnight, a nice reprieve to the recent selling pressure. Europe's markets are also higher this morning.

The 10-year yield is higher to 3.15%; and the VIX is down -4% this morning to 17.53 after a big spike yesterday that took it as high as 20 at the open before fading as the day wore on.

Trading comment: As long as the major indexes are trading below their 50-day moving averages, a more defensive posture is warranted. That strategy has kept me out of a lot of trouble in my career. That doesn't mean you can't pick at your favorite names, with an eye towards lowering your basis, but I don't like to get aggressive until the indexes are back above their key moving averages. Short-term, I am looking for some buying into month-end, but that is just for a trade.

long GOOG