Crude Oil (NYMEX:CL.K16.E) is falling for the 3rd straight day and is currently trading near session lows. But why the sudden drop you may be asking.
OPEC producers are due to gather in Doha on Sunday, to discuss whether to freeze oil production output at January's levels. Oil is dipping this morning as hopes of a deal between oil producers has faded. Hopes had been that OPEC would agree to freeze output, but it seems that Iran has other plans. Iran has already stated that it won't agree or adhere to a production freeze as it looks to boost its production. Reason being that sanctions on its oil sales were just lifted in January.
As you can imagine the other OPEC producers are desperate to make a deal and to raise the price of oil. After all, low crude prices have cost them billions of dollars so far.
If you take a look at the chart, you can see that the Trade Triangles entered into a sidelines position today. This is based on the red daily Trade Triangle that triggered at $40.09 this morning.
Key Levels To Watch:
1. 38.07 - The 50-day moving average provides the key level of support at 38.07. If this level is breached, oil could drop to $30 a barrel.
2. 35.24 - The weekly Trade Triangle will change to red if oil breaks through this level. This would confirm a move to the downside and further weakness.
3. 42.16 - The daily Trade Triangle will change to green if oil breaks through this level. This would confirm a move to the upside and further strength.
As we head into the weekend, I think that the sidelines positions indicated by the Trade Triangles is the best place to be based on the uncertainty of the outcome of the Doha meeting.
Hello MarketClub members everywhere. Many large, well-known energy companies triggered major buy signals yesterday based on green monthly Trade Triangles. In today's video, I will be looking at three energy stocks tied to crude oil which also gave buy signals yesterday. There is still a little bit of resistance just above the market in crude oil, but I expect that to be taken out and for oil to move to the upside in the days and weeks ahead.
Hello MarketClub members everywhere, it's the last day of trading for the week and it has been quite a week.
Yesterday, Janet Yellen, the head of the Federal Reserve Board, came out late in the day and said that things were getting stronger economically and that the job picture was improving. It was a rare appearance by Ms. Yellen as normally the head of the Federal Reserve does not come out to make any statements, except official ones. That one statement alone was enough to evaporate most of yesterday's losses in overnight trading. It is all about free money folks and the Federal Reserve has no more rabbits to pull out of its hat.
Verizon Communications Inc. (NYSE:VZ) indicated that it plans to make a bid for Yahoo! Inc. (NASDAQ:YHOO). I find it interesting that the Trade Triangles picked up that something that was going on with Yahoo on March 29th, 10 days before the Verizon news came out. This is one of the big secrets in the market, someone (and insider) always knows what’s going on. Because of this inside knowledge, they see an opportunity to make money and they buy either options or shares in that company, in this case, Yahoo. That translates into market movement and plays into the algorithm used for the Trade Triangle technology. Yahoo is up this morning in early trading and I believe that this stock can move higher from current levels.
It seems as though 100 point swings in the Dow have become the norm at least for the moment. However, as you know, I tend to look at the bigger picture and what's going on. I do that by looking at how the markets are closing compared to last Friday's closing. Continue reading "Yellen, Yahoo and Yikes!"→
Hello MarketClub members everywhere! How do you feel about the economy, the world, the elections, ISIS or ISIL...? Take your pick.
The other day at a general staff meeting I posed that same question to our amazing team here at MarketClub. I have to say that it was no surprise that they felt there was great uncertainty in the air. It wasn't just one thing, it was a combination of things that made them feel a little uneasy.
So the question is, how do you feel about the markets?
To me, something just doesn't seem quite right. It's not just one thing, it seems to be a combination. The reality is, the markets cannot keep going higher based on cheap money because sooner or later it's going to implode unless the Fed wakes up and gets real. On the fringes you have Puerto Rico running out of money and who's going to bail them out? Across the ocean, Greece is once again close to imploding. Who's going to bail them out? The IMF?
This past weekend, Donald Trump, the leading Republican candidate for the Presidency of the United States, predicted in a Washington Post interview that we are headed for "a very massive recession." His prognostication goes against what most analysts are forecasting and the fact that the stock market is within 500 points of its all-time high.
Now, Donald Trump is many things. But, he is not stupid and we should not rule out anything in today's marketplace. You don't become a billionaire by doing stupid things and certainly I think he has an interesting take on the current economic environment. Just as he has tapped into the anger of the average American citizen and his unlikely rise to the top of the Republican Party, don't dismiss what he is saying because you may or may not like him personally.
What has been fueling this market to the upside is free money from the Fed. It certainly hasn't been corporate profits. Most corporations have wrung out the last few vestiges of efficiency in their companies expenses.
Having said all that, I'm not totally convinced the market is going to go a lot higher. At the moment, the major indices are giving mixed signals, the Dow and the S&P 500 are positive while the NASDAQ is in a broad trading range. All three indices are very overbought and are due for some form of correction, in my opinion.