So, no agreement came out of the OPEC oil production freeze meeting this weekend? Why? Iran didn’t even show! They’re going to raise their production, just like they said they would. Saudi Arabia can’t have that! They’re never going to freeze or cut production, and yield market share to Iran. I wrote that long ago.
So, what’s happened? Oil’s plunged to about $38, and there’s no reason it won’t go lower from here. The energy firms praying for deliverance from their impossible debt situation by means of rising prices, that had to get, and stay north of $45… it ain’t gonna happen. Not anytime soon anyway, and certainly not soon enough.
Japan loves it, it’s off nearly 3%. They’ve had a deadly earthquake, and Toyota is running out of supplies. Our futures, trading in Asia right now, are off more than 1/2 of 1%. Metals are up some.
A check into all of my measures of stock market risk shows that it is still plenty high, and would take a considerable change of trend and some time declining, before they would ever signal that a period of low-risk market entry had arrived.
The same 19 issues are looking good: NKE, PSA, HRL, JKHY, SBUX, TJX, HD and LOW, EFX, COST, AOS, EL, NOC, FDS, CVS, SYK, UNH, NDAQ, and FL.
Those exhibiting the best strength at this time are: TJX, HD, EFX, EL, SYK and UNH.
I’m not buying anything until we see a considerable decline set in… though, I may reconsider concerning HRL. I’ll let you know.
Monday morning, 6:30 am EST, and oil’s recovered a dollar to $39, and our futures are now only off fractionally.
Here’s to your successful investing!
Harold F Crowell