Oil Is the New Gold: Buy When There’s Blood in the Street
2023.11.17 02:54
A weaker labor market, manufacturing production slowing, new home prices falling, and rising more than expected are all to blame for the big drop in oil prices.
The US also eased sanctions on Venezuelan oil. That’s the nature of commodities.
Fresh news can supersede older headlines and force the weaker longs out of their positions as we saw today.
But, Thanksgiving travel will goose demand.
So will the decline in crude floating storage. Tankers holding crude are been at the lowest levels in 2 ¾ years.
India has increased consumption. OPEC+ will continue cuts of production.
Pick your side.
I am going with oil is the new .
The futures contract (December) looks oversold and into support at $72.00 per barrel.
The ETF chart just broke the July 6-month calendar range high (horizontal green line).
And looking oversold.
More importantly, 67 is huge support so we are close if not at the bottom.
And if oil is the new gold, you buy it when it looks awful, and sell it when it looks strong.
ETF Summary
- S&P 500 (SPY) 450 clears see 465 Under 450 435 support
- Russell 2000 (IWM) 181 resistance 174 support
- Dow (DIA) 360 resistance 346 support
- Nasdaq (QQQ) 388 must clear and 370 must hold
- Regional banks (KRE) 45 big resistance
- Semiconductors (SMH) 160-161 now pivotal
- Transportation (IYT) 235 support
- Biotechnology (IBB) 120 pivotal
- Retail (XRT) 65 resistance and 60 pivotal support
Disclaimer: This content, which is prepared for purely educational purposes, cannot be considered as investment advice.
