A little bit…
Todays note is going to be short…I promise.
OPEC announce last night that they will be cutting production. This should be no surprise since the head of OPEC been warning Short Sellers for the last month that they where going to do something that would cause short sellers to get crushed. Oil is up 1.73% this morning. Brent is up 1.64% this morning. Exxon (XOM) is up pre-market 1.52% this morning. Shorts in Oil are getting squeezed out which could be good for the short term, BUT if the shorts get squeezed out, then there is no more floor to support Oil prices to go higher. This is not about price, but rather market positivity vs negativity. Get it?
If the talking heads come on to CNBC and start taking about Oil going lower, Jim Cramer did this, along with a bunch of others saying the same thing, chances are Oil will do the opposite. What’s happening to Oil today? It’s going up and the short sellers will begin to cover their positions. Yet when CNBC says there is a Bull Market in Oil, chances are everyone will crowded into Oil and eventually the Oil market will run out of steam.
It’s not about Price.
Subscribe today for $25 a month. With you subscription you get my latest stock ideas, intermediate term portfolio allocation along with my general MACRO market commentary. Thank you for your support!
Share this article:
More in QQQTrades.Club:
The U.S. 10-Year Treasury Yield, a significant indicator in the financial markets, has reached a pinnacle, marking its highest level since 2007.
The U.S. 10-Year Treasury Yield, a significant indicator in the financial markets, has reached a pinnacle, marking its highest level...
September 21, 2023
Will he keep raising?
Will he keep raising? The Federal Reserve’s decisions on interest rates have far-reaching implications for the economy and individual financial...
September 20, 2023
Inflation fighting stock idea below.
Inflation fighting stock idea below. Peter Zeihan has been calling for the collapse of China since his latest book, “The...
September 19, 2023
In the world of economics, the notion of a "soft landing" has often been treated as a holy grail – an ideal scenario where inflation is tamed, and the economy continues to grow without the dark cloud of recession looming overhead. However, while the majority seems to be banking on a soft landing in 2023, a contrarian perspective might suggest that such optimism is misguided and overly reliant on hope rather than a realistic assessment of the challenges ahead.
In the world of economics, the notion of a “soft landing” has often been treated as a holy grail –...
September 18, 2023