We’re at important support levels for the S&P, Dow and several leading stocks.
The cause of all this drama is the unfolding oil stand-off which is creating uncertainty in the markets.
My take on it is that lower oil prices should ultimately benefit most corporations and individuals, but the issue here is one of instability and uncertainty. Once the market starts to believe it understands the likely outcome then things should stabilize. The question is whether it can get there sooner rather than later because we are at a short-term crossroads right now.
Among all the uncertainty there are still some interesting plays out there, with stocks like CMG seemingly immune to the drama and still looking medium term bullish.
The financials have had a shake-up in the last few days but their OVI readings have held up pretty well and should benefit as soon as there is some sort of stability. If you’ve been shaken out of trades they should really have been scratch or minorly profitable ones. Stick to our trading plan and even this wobble shouldn’t have been a big deal.
Right now I still suspect this is mainly drama, but if it goes on much longer it could lead to something rather unpleasant. It’s a strange time of year for this sort of thing to be happening. This week is therefore important.
The workshop video edits will be released later today.
