Market Recap- Energy Insanity 11/21/22

We came into the day with crude oil and energy stocks getting eviscerated because OPEC said they will increase production by 500,000 barrels a day.

Obviously unexpected and bearish for the sector.

Anyhoo… 12:15, or thereabouts, the Saudi minister vehemently denied it and there was a massive bullish reversal.

The Wall St Journal I believe was to blame as media of all types breathlessly tries to “break” a story. WSJ has sucked for a long time and is bird cage liner in my view along with Barons.

Take a  look at the 15-minute charts of XLE and OIH below. You can see the gap down and then the spike up after they figured out the fake news.


OIH –was down $24 at one point.


When you take out energy, we had another consolidation day and that usually precedes a “move”, so I’m still short-term bullish for now.

Once I see that the energy space is “normal” again, maybe in a couple of days, I will probably add more energy names. Still have the best charts I think. Today was probably just a one-off because of fake news.


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