|Day Low/High||3.24 / 3.41|
|52 Wk Low/High||1.07 / 4.65|
Long crude oil versus short emerging market equities has proved a money-making strategy over the past six months and this trend is likely to continue.
Market players simply are not willing to chase solid news like this right now.
Momentum is weak, but I'm taking a longer-term view with some oil names.
The problem for traders in this market right now is that there just isn't sustained follow through.
One group that is looking much better today is biotechnology.
The action started a little slowly this morning but market players shook off early jitters and are doing a nice job of building on yesterday's momentum.
If you are taking some gains don't expect much downside before remounts develop.
I like small oil stocks, and I'm watching recent high-flying Chinese names like iQIYI.
One name I'm adding today is Solaris Oilfield Infrastructure.
Market players are obviously concerned about more selling and are waiting to see how well things hold up.
Until that action dies it is difficult to be too bearish.
Don't be in a rush to look for a reversal in oil's strong uptrend.
Rotational action is the main theme Wednesday and good opportunities are out there.
There just isn't enough buying energy to push this market any higher.
Oil is sliding again following some fleeting gains, while Venezuela is predicting that crude prices (WTI) may fall to the mid 20s next year if OPEC fails to stem supply.
The recent steep drop in oil prices may lead to some oil companies going out of business within a few weeks.
Particularly noticeable has been the heavier volume on down days.
Here is my compilation of last night's profit reports. 24 beats: W&T Offshore (WTI) Oasis Petroleum (OAS) Marathon Oil (MRO) Huntington Ingalls Industries (HII) Cognizant Technology Solutions (CTSH) Disney (DIS) Electronic Arts (EA) Regency Centers ...
COH and HLF are looking for earnings redemption. I am also keeping an eye on WTI.
Let's see if this year's picks can perform better than last year's cohort.