Oil Services Holders Trust (OIH) closed down 1.8% as WTI crude oil futures sold off 1.91% to $96.23, according to Bloomberg. March and April put option implied volatility of 31 is near its six-month average of 30, according to Track Data, suggesting non-directional price movement.

PetroChina (PTR) overall option implied volatility of 34 is above its 26-week average of 31, according to Track Data, suggesting larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Oil Services Holders Trust (OIH) closed above $155 as crude oil futures traded above $91 according to Bloomberg. February and April put option implied volatility of 30 is near its 26-week average of 30 according to Track Data, suggesting non-directional price movement.

Merck & Co., Inc. (MRK) overall option implied volatility is at 21 according to Track Data, below its 26-week average of 23 into its release of Q4 EPS on February 3, suggesting decreasing price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com

U.S. stock futures are lower, this morning as investors are awaiting economic data. Futures for the Dow Jones Industrial Average are down 10 points to 11,029.00, while those for the S&P 500 are down 0.60 point to 1,185.90. Futures for the Nasdaq 100 index lost 1.50 points to 2,144.00.

U.S. stock markets closed lower yesterday, with the Dow losing 0.36%.

Economic data on Case-Shiller home prices for September and the Chicago PMI index for November business activity are due at 9:00 a.m. and 9:45 a.m. ET, respectively. The Conference Board is set to release November consumer-confidence data at 10 a.m. ET.

Stocks made a new push today ahead of earnings season. Where the market goes from here will most likely be dependent upon the reaction the spate of earnings this week. The news that the FOMC Minutes showed a less optimistic but not definite move of quantitative easing helped to keep things from getting out of hand.

Here were today's unofficial closing bell levels:

Dow Jones 11,020.33 +9.99 (0.09%)
S&P 500 1,169.72 +4.40 (0.38%)
Nasdaq 2,417.92 +15.59 (0.65%)

Top Analyst Calls

Boeing (BA) closed at $68.77. BA is expected to announce Q2 EPS in late July. BA's 787 Dreamliner is on track for its first delivery by year end. Overall option implied volatility of 33 is near its 26-week average of 32, according to Track Data, suggesting non-directional price movement.

Oil Services Holders Trust (OIH) closed at $99.16. Crude oil futures are recently down 0.87% to $78.17, according to Bloomberg. OIH holdings include BHI, BJS, DO, ESV, GRP, GSF, HAL, SLB, HC, NBR, NE, NOV, RDC, RIG, SII, SLB, TDW and WFT. OIH July put option implied volatility is at 41, October is at 43, above its 26-week average of 34 according to Track Data, suggesting larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Oil Services Holders Trust (OIH) closed at $98. Crude oil futures are recently down 0.83% to $74.85 according to Bloomberg. OIH volatility increases as uncertainty regarding oil drilling mounts. OIH holdings include BHI, BJS, DO, ESV, GRP, GSF, HAL, SLB, HC, NBR, NE, NOV, RDC, RIG, SII, SLB, TDW and WFT. OIH June put option implied volatility is at 55, July is at 53; above its 26-week average of 36 according to Track Data, suggesting larger price movement.

Stocks with implied volatility above 30-day mean; Apollo Group (APOL), Qualcomm (QCOM), Boston Scientific (BSX) according to IVolatility.

CBOE Volatility Index-VIX at 30.56; 10-day moving average is 32.69, 50-day is 25.74, 200-day moving average is 23.12.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

As a massive oil spill reaches the Louisiana coast, many environmentalists are quick to point out that this oil spill should eclipse the Exxon Valdez disaster.

The White House has even noted that this spill is "a leak of national significance," demanding that no additional drilling take place until the investigation into the oil spill is complete. David Axelrod, White House senior adviser, noted that the president "said he is not going to continue the moratorium on drilling but ... no additional drilling has been authorized and none will until we find out what happened here and whether there was something unique and preventable here." The "here" in the quote refers to the current oil spill.

TheStreet.com's Jim Cramer says the stocks like to move higher along well-worn paths.

With the usual suspects rallying -- gold and oil -- it's important to remember how the oil rallies have unfolded in the past. You have to be able to recall the oil pecking order of the petroleum complex ramp.

First to move in the drilling complex is Transocean (RIG) (Cramer's Take), the wildest trader in the group. Then it is National Oilwell Varco (NOV) (Cramer's Take). Forget that both of these are the least affected by the day-to-day price of oil. The market's real stupid on these oil moves, and that's what happens. On the oil side it is Occidental (OXY) (Cramer's Take), which at least is closely correlated and can have a big move throughout the day.

Why does the market just go straight down whenever the oil futures go lower? TheStreet.com's Jim Cramer says.

A market driven by the price of oil -- good when it goes up and bad when it goes down -- is way too binary to profit from. Yet that's where we find ourselves and it is so counterintuitive as to be unnerving.

I think the fact that oil is struggling and failing to take out $60 is a good sign. The purchasing power of Americans is dependent upon jobs, expenses, psyche, interest rates and the stock market. We know that the stock market isn't our friend or our enemy, interest rates are still our friend, jobs are awful, and psyche seems like a push because the love for President Obama is still in the air.

TheStreet.com's Jim Cramer says people got too positive last week -- remember, this market is still awful.

A week ago it all seemed so inevitable. The bulls were in charge. The worst was over. I had to go on The Today Show, and I knew I would once again be asked about the call I made about how the stock market simply isn't going to be the place you want to invest in for money you really need, part of the radical re-evaluation of an asset class turned reckless, dangerous and joyless.

Worse, we had been up for four straight days, and there was a lot of that painful chatter about how "as goes January, so goes the year."

I found it all painful. This is a market that lets you divine no conclusions whatsoever about short-term performance of the market. It is true that we had solved the black holes of Wall Street, but Main Street's just beginning to haunt people, and that has the ability to derail Wall Street once again.

Financial Select Sector (NYSE: XLF) closed at $13.69. XLF October option implied volatility is at 175, November is at 123; above its 26-week average of 41 according to Track Data, suggesting larger price fluctuations.

SPDR Gold Trust (NYSE: GLD) closed at $89.90. Gold is recently up 3.99% to $921.90 according to Bloomberg. GLD October option implied volatility is at 62, November is at 53; above its 20-week average of 30 according to Track Data, suggesting price movement.

Oil Services Holders (NYSE: OIH) closed at $97.60. Crude oil futures are recently down 4.98% to $82.28 according to Track Data. OIH holdings include BHI, BJS, DO, ESV, GRP, GSF, HAL, SLB, HC, NBR, NE, NOV, RDC, RIG, SII, SLB, TDW & WFT. OIH October option implied volatility is at 120, November is at 102 above its 26-week average of 39 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Financial Select Sector (NYSE: XLF) is recently trading at $19.50 in pre-open trading, below its close of $21.15 Friday. XLF September straddle is at $1.90, October is at $3.59. XLF September option implied volatility is at 100; October is at 66 above its 26-week average of 38 according to Track Data, suggesting larger price fluctuations.

Oil Services Holders (NYSE: OIH) is recently trading at $157.80 in pre-open trading, below its close of $164.21 Friday. Crude oil futures are recently down 5.51% to $95.60 according to Track Data. OIH holdings include BHI, BJS, DO, ESV, GRP, GSF, HAL, SLB, HC, NBR, NE, NOV, RDC, RIG, SII, SLB, TDW & WFT. OIH September option implied volatility is at 55, October is at 45 above its 26-week average of 37 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with Sam Hopkins, editor of Energy and Capital, who despite the recent sell-off in energy, sees potential in energy.

Q. Sam, in a recent piece on the Russia/Georgia conflict, you cautioned your subscribers to watch their Russian shares closely, but to hold onto their energy shares. Would you expand on that advice?

A. Well, we see a mix of geopolitical risk and opportunity in the flare-up between Russia and Georgia. Ironically, the opportunity for energy investors comes from the risk itself. It's hard to put your finger on exactly how much the "risk premium" in a barrel of oil is (meaning, what dollar amount is priced in to accommodate for pipeline leaks, theft, war, or other factors that can affect supply). But what we do know is that in Russia's case, as one of the world's top producers of hydrocarbons, national oil and gas companies stand to gain when futures prices rise. In this way, Russian energy stocks like Gazprom (OTC: OGZPY) and Rosneft (OTC: RNGZY), both of which trade in London and here on the Pink Sheets, may gain even while the broader Moscow market turns downward.

Q. Many investors may view this conflict as an example of why international markets may be too risky for their money. After all, the Russian stock market - the RTS - has fallen about 20% in the past month. Will you share your thoughts on why investors need to diversify abroad?

TheStreet.com's Jim Cramer says this insurance company is a sign of lower costs, and it's not done yet.

How many ways can I explain that what's going on is massively deflationary? How about by pointing out one of the most sensitive stocks to deflation: Prudential (NYSE: PRU) (Cramer's Take). Take a look at the move this stock has had from its lows. It's almost a 50% move! That's remarkable. It is a sign that everything is worth less than it was a couple of months ago!

I have long used the price of conservative insurance companies -- and PRU is a conservative one -- as a gauge of inflation. Now, I know that Barron's had a positive article about PRU this weekend, but all you really got was a rehash of what an analyst has been saying. That's not behind the gain.

This company is a bulwark of deflation. Why anyone thinks that inflation is still a problem after looking at that chart is just nuts.

TheStreet.com's Jim Cramer says the oil stocks' decline yesterday was exacerbated by a hedge fund's collapse.

"I think the collapse in the commodity stocks shows a worldwide recession."

"The decline in oil and oil service stocks, far more severe than the decline in the commodity, bodes for $80 oil and gas."

"Without a hurricane hitting rigs, the companies involved in the servicing and maintaining rigs will have severe earnings declines, at least according to their stocks."

These are three perfectly acceptable analyses of the action in the Oil Services HOLDRs (AMEX: OIH) (Cramer's Take) and in the oils in general yesterday in light of Gustav's failure to do any real damage and a continued expectation that economies around the world are slowing.

It's just that they are false takeaways. The single most material issue for the stocks -- not the companies -- was the collapse of Ospraie Management, which blew up and got blown out and took a ton of stocks down with it. The fact that this market is thin, that lots of players clearly knew this blowup was coming, and that the fund was no doubt leveraged up the wazoo (as all desperate managers tend to be) exacerbated the declines perhaps two- or threefold.