Oil is down more than 4% at the open, causing me to liquidate all of my oil positions at the open. They can always rally back, and have often done so, but the pin action in crude has been fairly dreadful. Almost every other commodity has performed better, notably natural gas.
Perhaps this is phase 2 of the economic war against Russia — flood the markets with as much oil as possible to reduce their net income and hurt the Ruble.
It’s also worth noting the Ruble is -4% against the dollar today.
Thus far the price action is brutal with almost all commodity stocks drilled lower. The pockets of strength are found in airlines, retail, casinos, and even tech. Perhaps we’ll reverse and run higher today, everything but commodities — one of those days. Or markets will remain weak with bids building back up in commodities as the day builds. Whatever the case, it’s probably best to have a large cash position now.
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