Back in late 2008-early 2009, oil and stocks prices had bottomed around the same time. What if oil drops to 60 or lower per barrel. Will it be different this time?
What about Dennis Gartman's very bearish prediction for oil on Fast Money? He has made so many bad calls in the past that I am hesitant to believe him.
However, oil does have a tendency to be overbought and oversold. Just keep in mind the extreme oversold prices which had occurred in Jan 1999 at $17/barrel and Dec 2008 at $30/barrel.
I was also in a Sears this weekend. The overhead lights were exposed florescent bulbs. They appeared to be old bulbs with a yellowish tinge which creates the depressing mood everyone is talking about. I noticed that JC Penney's had replaced their lights with bulbs which produces a bright and cheerful atmosphere. Sears should take note and do the same.
Remember Guy Adami's comments:
buy at 278
add at 285
sell at 315
stop loss at 270
Looks like he expects 285 to be the breakout level for traders to buy into.
"Market down sears is up" Why do you think this is so?
Is it because of forced short covering by traders who are getting margin calls from their other positions during this market correction?
Cramer has been telling everyone to sell the rallies rather than buy the dips. A lot of the funds are probably doing the same. Until this attitude changes, there cannot be a sustained rally. Interesting market action this morning at 10:20
Are you able to find shares of UVXY to short?
I just bought some SVXY for a trade. Pre-market, the indexes are now near yesterday's low. For this morning, if these lows hold, there may be a rally. However, it will be hard to have a sustained rally since Cramer has been recommending that everyone lighten up their positions by selling into any rally.
Ha Ha! Funny
Icahn is now down over 176 million on NFLX
I wonder if he had hedged his position with put options?
Also, BAC which was highly recommended as a strong buy. Up premarket and now having a major correction.
My expectation that BX will retest the two previous lows of 27.50 before earnings has just happened. Over 800K shares traded in a one minute period at 9:38 CNBC said there was a lot of computerized trading. My only concern is that "Sell the News" could be the end result after earnings for BX.
Remember the decline in oil from it's peak of around 150 in July 2008 to it's low of around 33 in early 2009. Some articles feel that the decline in stocks was a major reason for the decline in oil back then. If this is correct and the present market correction gets much worse or continues for an extended period of time, oil could easily drop below it's production cost. Another point to consider is that the seasonal low month for oil over the past 30 years is February. Maybe that was why oil had bottomed in early 2009.
If the market cannot make continuous new intra-day highs for today, it looks like another afternoon panic selloff is in the works.