Not a good time to be invested in market. IEA changes forecast, warns oil glut will drag into 2017
https://www.bnn.ca/iea-changes-forecast-warns-oil-glut-will-drag-into-2017-1.565926 Crude oil prices are not going anywhere fast. There is OPEC meeting this month. If nothing comes out of that then crude oil is range bound and braking above WTI $50 would be a huge challenge.
Some of the oil companies that have survived so far but some may start to run in trouble in matter of year if the prices stay in the present range. Oil companies are fully exposed to oil prices their hedges have expired. Companies that are sustainable around WTI $35 would be fine not that break even around WTI $50
It seems that the market wants to correct. After the run in oil stock there has been some weakness but oil stocks have kept most of their gains. For me to invest I want to see major correction in oil stock somewhere close to previous lows.
In the mean time I would mostly trade the stock as declining trend for small spreads. Do not file comfortable in market exposure at this time.
Not interested in giving up the gains from the last run up in oil stocks.
Waiting for more clarity in the oil sector.
At $2.17 BNK offers 1.36% gain and $5 per trade which is not very big spread. But once they announce the closing date may consider a block of shares at a lower price.
Today there were bids of 10 million shares at $2.17. it consisted of over 40 orders. There are few bids from half million to 1.5 million shares. There could be an iceberg order too at close the some of bids were pulled and only 5.7 million bids left. The largest single bid is 900000 shares from Scotia. 4 500k bids from dif brokers & one 884100 bid from BMO
On Friday BNK is deleted from the index there might be a few million shares being sold. Unless all those bids disappear it is not going to break $2.17
If the stock does breaks below $2.17 before pay day I am interested to park some money in BNK.