Oil sold as if the world ended...Once everyone realizes that the US is not going to collapse confidence will restore, the world is trying to find balance and OPEC 3.6Mil bpd cut will add support once the market realizes that a .25% hike plus "pausing" will be looked at as positive once we get past today or week which at that point moving forward if Inflation drops significate in the coming months with no fear of another hike will be looked at bullish but this fear is really overplayed today and could be the crest for fear as we now past FED Decision. It might suck more till Oil hits $64- would be pushing the limit but phycological $65 would be the bottom then the traders can stick their flag in and head higher as China's growth will be fine and a resilient US economy will prove itself or if there's any disruption in Oil Delivery would be bullish but greed will return as always "we're traders" and it could be bullish through the next months with drops in Inflation and No FED. People get to the point where fear topics become "heard it before" then people turn positive and the market runs 90% perception. Today and every day this week is playing into fear but after a weekend at the cottage, Monday will be a heck of a lot better. I can't get over how hard stocks are hit, we all know the cycle, wait it out unless you believe in armageddon. Don't get swept up in this hold if your long these SP prices will return even higher next time if they stay firm. The FED has its finger on the pause and if there's a significant drop in Inflation in the next 2-3 months it can change 5.25% plus lower Inflation readings will be bullish as we head towards the summer, the US sends a lot of Crude to Europe and Europe situation once passed the economies will be resilient and it's happening when the summers here best time for movement plus the east coast has had horrible weather gray and it's getting to people after 8 months of winter! Need the sun...things will be fine and I have money in all 3 Oil Plays because this is the time to continue accumulating I'm holding what I'm buying too. The Oil Industry have all had lower Q1 no big deal we've been spoiled but it's still solid revenues so actually because of this sell-off to lower SP then Q1 should boost SP because there's no rule that stocks can't trade against their commodity. Think Bullish and this will be remembered as one hot week. Oil will head higher, we can't help ourselves but things do become familiar and that should remove fear from traders. These companies are pumping money 24/7 so don't kill them because of a bad week it's insane and everyone is playing right into it with no foresight of this being overblown. No one can say exactly how tight Oil could get so this could surprise everyone with OPEC 3.6Mil bpd cut there's always a chance of Oil Delivery problems to and what's happening with Iran and the US seizing tankers plus Russia's a loose canon so that factor of instability in the Oil Market will remain as support for Oil too. Things will be fine! The US will be doing business as always tomorrow,
Optimism, Pessimism, and Realism
It's all in trading.