Obviously many parts of the market are extremely weak, but the energy sector is among the weakest.
In the next day or so, you’re going to hear about a hedge fund that collapsed, and was forced to liquidate all positions. This will ultimately be the excuse for the price of crude oil dropping about $4 at it’s worst today.
Whatever the reason becomes, all we care about is finding trades and investments, and the energy sector is setting up nicely.
The market has still not achieved the magic number expected, but as usual it’s not easy and the market is going to try and trick everyone thinking it’s going one thing, while it does another.
Therefore, it remains my belief there is more downside for the market, and you can tune into the video to find out where or how much that is.
Gold was stuck in the mud today, still decided whether or not to go higher.
The bond market continues to go higher, driving treasury yields lower yet again. As long as the stock market is under pressure, yields will remain in a downward trend.
There was even talk today about QE-4 which is nonsense, but the discussion provides hope in a down market. Isn’t it strange how the Fed states they are data dependent, yet when the stock market goes down they feel the need to come to the rescue. All in all, a few weeks of a down stock market cannot affect the economic data (even if most of it is made up to some extent), yet next month the only data that will have changed in investor sentiment.
All the necessary details can be found in tonight’s video below.