OIL Stocks Are The Biggest Gainers Today
Weather forecasters are calling for a cold spell that could last for over two weeks.
Accuweather.com's Joe Bastardi expects to see the warm winter weather "turn on a dime," as early as this weekend. Bastardi expects the "weather pattern from mid-January through mid-February has a chance to mimic the winters of 1965-66 and 1957-58, each of which ended cold and stormy after a warm start. A worst-case scenario would be if this winter plays out as did the winter of 1977-1978."
As seen in the above chart crude oil has been selling off rather sharply these past 2 weeks. Crude oil closed the day up $1.11 for the February contract.
What I found interesting is that crude oil only bounced a dollar today but many oil stocks had some sharp up moves into the close. For example TDW,GLBL,MRO were all up over 4%, BP was up close to 5%,TSO was up over 7%.. It feels like the oil stocks found a short term bottom and may rally a bit next week.
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1 comment:
Hi H. Lovil
I was short too but got on January 10th when I saw the Nasdaq showing relative strength compared to the rest of the market. I think I even posted some comments about the Nasdaq strength and that I was lowering my protective stop.
What do you have short? If you have QQQQ short, I'd look to get out on the first dip. This is a strong market. I think commodities might bounce next week so maybe you might see some money coming back into oil and metal stocks and hopefully a little profit taking in the Nasdaq giving you a chance to get out on a dip.
I'm sorry you are caught short...The only way to avoid that happening to you again is to always use stops.
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