Weaker labor market, manufacturing production slowing, new home prices falling and crude oil inventories rising more than expected are all to blame for the big drop in oil prices.US also eased sanctions on Venezuelan oil.That’s the nature of commodities.Fresh news can supersede older headlines and force the weaker longs out of their positions as we saw today.But-Thanksgiving travel will goose demand.So will the decline in crude floating storage. Tankers holding crude are been at the lowest levels in 2 ¾ years.India has increased consumption.OPEC+ will continue cuts of production.Pick your side.I am going with oil is the new gold.
The futures contract (December) looks oversold and into support at $72.00 per barrel.The USO ETF chart just broke the July 6-month calendar range high (horizontal green line).And looking oversold.More importantly, 67 is huge support so we are close if not at the bottom.And if oil is the new gold, you buy it when it looks awful, sell it when it looks strong.
ETF SummaryS&P 500 (SPY) 450 clears see 465 Under 450 435 supportRussell 2000 (IWM) 181 resistance 174 supportDow (DIA) 360 resistance 346 supportNasdaq (QQQ) 388 must clear and 370 must holdRegional banks (KRE) 45 big resistanceSemiconductors (SMH) 160-161 now pivotalTransportation (IYT) 235 supportBiotechnology (IBB) 120 pivotalRetail (XRT) 65 resistance and 60 pivotal supportMore By This Author:Soybeans Could Be The Next Parabolic Runner Key Market Relationships For Next Big Move It’s All About Risk And The Long Bonds
