As cool as $100+ oil is, the market hates it. Every time we uptick in crude, the market legs lower. Trading civil unrest is difficult, especially when it’s an armed conflict. Will it spread to Algeria and Saudi Arabia? If not, perhaps oil is $20 rich here and worth betting against, via SCO. However, how can I put that trade on while the middle east is so volatile?
Answer: I can’t.
Hence, we are stuck with expensive crude, which hurts consumption. Higher crude serves as a tax and Wall Street does not like it. Even worse, oil and gas stocks, aside from the degenerate small cappers, aren’t even benefiting from this shit storm. The market is dying to trade higher. It wants a reason to rally to 14,000 AND MORE. However, I’m afraid that the crude wall being built up on a daily basis will kill this rally where it stands. The downside could be significant, should the high energy prices permeate consumer spending habits.
Until the middle east simmers down a bit, I’m afraid your best trade is a quick one or cash.
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Minerva flutters and suggests these are perilous times for the lotto and pari-mutual crowd.
Or, pure refined cement.
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the shits already begun.eggplant,4.49 a pound.fuck,oil 140 here we come. lamestreet media just got tired of showing the unwashed on what is still going on……….out of sight,out of mind,will not bring down the price of oil.
Agree – but some healthcare names might not hurt.
Agree too but healthcare reform is far from over and I am not sure if worst case scenario is priced in. PFE rallied a lot in the last few months.
zzz
I wouldn’t buy pharma, unless you are getting 6% yield – but other medical/hospital plays look good.
IBM up 3% oh how convennnnient
The market also wants to trade higher before QE dries up in June.
Thats’s the next inflection point IMO. What does the Fed do in June. Wall St will start to worry about it in April/May.
WOuldn’t be surprised to see stocks rally here in the shorter term if the Arabs can calm the fuck down.
Absolutely fuggin nailed it
Will today finally be the day where dip buying gets punished? Me thinks when that finally occurs it will come as a bit of a shock to folks.
i took a trade in crude this morning ( 4:30am ) and caught the move up to near 106 but I have been staying away from crude for the most part because of the increased volatility.. very tough market to trade right now.. at some point we will revisit the huge gap down near 89.71 and i think if we get to 85ish it will be a good long.. hell no re: shorting though.