Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Thursday May 5, 2011. Market wrap up.

 The commodity sell-off became a panic for commodity bulls as too many longs tried to exit at the same time. Most of the damage had been done prior to a rally in the dollar and today a solid dollar reversal took place.

We see the potential of further moves up in the dollar and down in commodities in the short term as these types of reversals tend to carry further than many expect. T
The market did not have a good day but there were some bright spots in the sell-off. The Dow transports and technology benefited from the commodity rout as money moved into these benefited sectors. The sharp price drop in energy, although not enough yet to make a huge difference, could become a big factor for a more bullish backdrop for the market in the weeks ahead.

It should be noted that some geopolitical risk could be coming out of commodities as a result of the Bin Laden death.  If this is the case, argument could be made for oil to drop below 80 in the coming months as supply is coming online both domestically and worldwide at a quick pace.

We see commodity shares as a dangerous long but the broader market may become buyable very soon, if not tomorrow on a bad jobs report. Time will tell.