RE:Is there a Dr. In the house Barney, you should be shorting! Or at the very least holding off from going long.
Go back a bit and read my last post.
Algos are in control in a low liquidity paper market. This is a rare easy opportunity to collect some cash to hedge and offset your long positions, and it continues today. If going long, wait for the turn with volume to buy. No turn in sight yet.
We are way below fair value for oil stocks, so the elastic band on the slingshot is being stretched, once again.
Crude barely broke low of the year, $73.60. Could still drop a lot more, but lets see if it slices through it. It is a slow motion train wreck, with a lot of downward momentum.
For oil stocks, watch and follow XLE as your guide.
Watch heating oil, and RBOB gasoline, which are falling with crude in lockstep. If one of them change, it may be a signal that crude may turn as well.
Also EIA inventories tomorrow, probably a big draw again as there was a very small SPR release. That may slow further drops in crude for the time being. Last week's monster draw didn't seem to hold it though.
Biden can start buying back the SPR at $70, so that kind of puts a floor under it. Some technical levels of support remain between 73.60 and $70.
SP500 and Nasdaq are in a death spiral. Fire at will with stops on those shorts.
I think the Santa Claus rally in the market is over. It consisted of the Powell Pump, and we just lost it, back to where we were that day. I hope everyone enjoys their lump of coal.
barneyj44 wrote: I have cut the bejesus out of my hands trying to catch this falling knife. No bottom in sight?