The trend in news articles3-4 months ago the commodity news was 75% about Oil heading towards $120 - $140 then 2 months ago 40% of news was about Oil hitting $100 and now out of every 10 news articles on Oil only 1 is about Oil hitting $100 I know that this isn't an exact science it's my perception. Friday dip into $70+ Oil was a huge wake-up call for investors holding Oil stocks and when Oil broke below the phycological $80 Oil we saw investors throw in the towel plus having a general market sell-off at the same time dropping over 700 pts during the day was more than traders expected and it started overseas around 2am when Oil started to slowly decline from $83 to hit $79 when they pass the torch over to the US traders who kept it trading between $77 - $79 pushing it higher at the close to $79. And the way it got to $78 Oil was a slow decline and that usually sticks compared to traders dumping all at once driving the price down $5 in a matter of a minute and usually bouncing right back most times. The world knows and agrees that times are going to worsen due to Central Banks' rate hikes and that's why the stock markets have been shaving off excess fat and are starting to get lean reflecting lower quarters with substantially lower revenues. Because of the volatility in Oil you can see that Oil stocks have gotten tougher compared to recent times like the beginning of Aug when over a few days Oil dropped from $93 - $88 driving BTE down to $5.62 yet here we are with $78 Oil and BTE is at $5.82 and that's why I posted Friday not to overreact because we've been here before but BB post might count for less than 10% of the investors in the stock. BMO loss on their BTE holdings is at $12,580,000 so they will either make a $hit load of money from BTE holdings or they'll use it as a tax writedown against their profits and when you have the DOW down 6876 and TSX down 3211 I'm sure that there will be a few firms having losses. Next week there is really not a lot of market-sensitive US Data coming out and the FED is now in the rearview mirror so Oil could have a chance to come up for air and at least return into the $80+ and there's always the wildcard sitting on the sidelines that could create a situation that will push Oil higher.
