Nasdaq: +11.11… S&P: +2.94…
The markets floundered aimlessly today. The good news is that the Russell, after yesterday’s pullback, didn’t see a follow through to the downside.
There are a lot of stocks that are pulling back a little, but that is normal after the move we’ve seen.
Energy continues to have problems, not so much the oil contract as much as energy stocks. Crude could have big problems soon though.
None of those thieving bastards over at the Austria OPEC meeting are playing nicely in the sandbox. If this “deal” blows up, then crude could plummet. As a guy that likes a little anarchy from time to time I’m rooting for an implosion. I’ll also fill up my Wrangler a lot more cheaply. Let it go to 20 bucks I say.
Saudi Arabia is demanding both Iran and Iraq participate in the cutback , while Iran is demanding that Saudi Arabia undertake virtually all the targeted reduction alone. In a recent meeting with Iranian officials, the Saudis supposedly threatened to unleash even more production and exports, if there was no OPEC deal.
Everyone seems to forget, (I didn’t), that the Saudi’s about a year ago said in no uncertain terms that they wanted to see oil at 20. Why would they lie then? Why would they change anything now?
Certain stocks are getting on my last nerve as they seem rudderless, waiting for a catalyst of some sort.
The big ‘if’ right now is the energy sector (XLE). If there is a blow up coming, it could weigh on things. The opportunity though will be to find where that money will go to find a home. Biotech maybe?????? Stay tuned, its sure to get interesting.
ARDX , one of our P&L names, is getting close to triggering, so keep an eye on it.
One name to keep your eyes on is VECO. Its coiling beautifully and could be getting ready to break out. Looks like 29.50-30.00
On another note, rates and the dollar look a little short term tippy toppy, so if they do pullback, there is probably a long opportunity in GDX and/or NUGT. I will keep you posted.
See you in the morning.