Yesterday, a group of countries that include Saudi Arabia and Russia agreed in principle to freeze oil-production rates. On the surface, this sounds like a good thing. But it’s really just a bunch of bull.
Iran plans to increase production between 500,000 and 1 million barrels of oil per day. That will add much-needed foreign currency to Iran’s economy. If the deal between Saudi Arabia and Russia hinges on Iran, it’s dead in the water already.
I told you last week that Iran wouldn’t play along. They don’t play nicely with the other kids. Ever. The Pollyanna’s think so though. Keep listening at your peril.
Bottom line? Oil was oversold. It can go lower, it can go to 35. I will tell you this. If it retests then lows I will buy it and hold it for a year.
The market has bounced and it has been strong. The market has gapped up everyday since last Thursday. You cant buy rallies like this, so you haven’t missed anything, You cant buy a market that gaps everyday, this is algo stuff. Take a look at the gaps in the SPY below.. You know I don’t buy bottoms and I will never chase a gap without a pullback.
Patience grasshoppers. That’s why you subscribe here.
Don’t fall victim to to FOMO, The Fear Of Missing Out. You chase you lose.
See you in the morning.