Shale production continues to rock the global oil market and is making our target of $88 a barrel looking more likely any day. Since crossing $100 a barrel, which I equated to crossing the Rubicon, oil had has its biggest monthly drop of the year.
To have a more complete picture of the current situation in the oil market, we take a look at the charts from different time perspectives. Additionally, we explore how it relates to oil stocks and the oil-gold link.
The SEP13 U.S. 30-year bond futures are down a somewhat significant amount of 1’19 points to 132’16. This is likely due to the higher revisions to last month’s retail sales number, causing more concern about Fed tapering that could be announced next month.
Too often investors get caught up in political parties, focus on the negative and lose confidence in stocks. As a result, they can miss great bull markets. When it comes to finding opportunities, it’s not about the political party, it’s about the policies.
Equities traded in an extremely tight range last night and only widened slightly heading into this morning as the S&P 500 has a 6 point range this session. A lower high leads to the slight belief we are seeing some profit taking above 1700.