It is very difficult to take call on the oil sector as it is driven by the global crude oil prices. These are difficult to predict as any negative event can spike the prices. I think it is best to avoid the sector in 2006.

There is a fair bit of money still waiting to be invested at every fall. That seems to be the main reason for today's bounce back.

Volatility is going to stay and with the results season over, the market should remain range bound.