Two Ways: Black Gold Looking Tarnished?
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Crude oil plunged over 8% yesterday, to below $46 a barrel, due in part to gains in the dollar and concerns that the pace of any global economic recovery could impact demand.
Reuters reports US crude for May delivery fell 8.8% to $45.88; Brent crude, the larger market, dropped 6.5% to $49.86. May US contracts also expire today, which is adding to the selling pressure.
International Monetary Fund director Dominique Strauss-Kahn said the agency will cut its global economic forecasts; Strauss-Kahn doesn't expect a recovery until the first half of 2010.
For more on the economy, see Professor Kevin Depew's Five Things: Point of Recognition Edges Closer.
From the Bull Pen: For oil exposure, bulls can continue to look to Halliburton (HAL) (the stock traded dry after earnings in the face of an ugly day). Transocean (RIG) is also a possibility fading (read: buy) into $60. Remember to set a 2% sell stop.
From the Bear Cave: Bears can consider a downside play in Tesoro Corporation (TSO). Watch if $14 support holds (also its 200 DMA). If that breaks, the next level of interest would be $13; then $12. One can limit risk with a 2% buy stop above entry.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.95%, Nikkei -2.39%, India -0.74%, Shanghai -0.85% and Taiwan 1.73%.
Glancing towards Europe, we see the CAC -0.51%, DAX -0.07%, FTSE -0.44%,
As of 8:20 AM EST, S&P Futures are trading -7 to 825.00, and Nasdaq futures are -7 to 1306.00.
A Look at Commodities
Over in commodities, crude oil is trading +0.12 to 46.00 while gold is +3.60 to 891.10 this morning. Silver is +0.600 to 12.160 and copper -7.55 to 202.80.
The dollar index is -0.0550 to 86.9300.
No economic events today but click here for the full trading radar:
Win Win! Go get 'em!
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