Gasoline On Fire
This morning, the United States Gasoline Fund (NYSEARCA:UGA) is trading higher by 0.45 cents to $55.50 a share. This tells us that gasoline prices at the pump are going to be higher if you have not noticed already. The average price for a gallon of regular gasoline in the United States is $3.57 according to AAA. High gasoline prices are a direct tax on the U.S. consumer. It is always important to remember that consumer spending accounts for roughly 70.0 percent of the gross domestic product in the United States. Short term traders should watch for intra-day resistance on the UGA around the $56.00 level.
Some other oil and energy ETF's that are trading higher this morning include the United States Oil Fund (NYSEARCA:USO), iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL), and the United States Heating Oil Fund, LP. (NYSEARCA:UHN). Traders and investors must remember that high energy prices have always come back to hurt the stock markets. These energy vehicles will usually trade inverse to the U.S. Dollar Index.