Two Ways To Play: Bottom In the Barrel?
Strengthen your portfolio in good times and bad.
An emergency OPEC meeting is being held tomorrow. According to Bloomberg, the oil cartel's first production cut in almost 2 years -- expected to be 1 million barrels -- could fail to stop the plunge in crude as the financial crisis spreads to emerging markets.
Ben Dell of Sanford Bernstein says the correlation between OPEC cuts and price increases is practically zero and merely confirms the market is oversupplied. Yesterday crude fell to a 16-month low of $66.75 a barrel in New York. Read Toddo's view on energy in yesterday's Random Thoughts.
From the Bull Pen: It's been a mess in the commodities sector. But Professor Adam Michael stated on the Buzz yesterday that a close for crude above $70 would be short-term positive. This would coincide with $57 for the Oil Fund ETF (USO).
From the Bear Cave: We've long maintained that lower crude was a negative indicator and that, longer term, prices are likely to decline. Bears can eye Panera Bread (PNRA) for a downside play. Note the $45 resistance level.
Quick Check Around the World
Asian trading closed with the Hang Seng -3.55%, Nikkei -2.46%, Sensex -3.92%, Taiwan -2.72% and Shanghai -1.07%.
Glancing towards Europe, we see the CAC -2.81%, DAX -3.70%, FTSE -1.55%
As of 8:10 a.m. EST, S&P Futures are trading -13 to 889, and Nasdaq futures are -13 to 1235.
A Look At Commodities
Crude oil is trading +0.16 to 66.91. Gold is -28 to 707. Silver is -0.090 to 9.370 and copper is -15.60 to 185.10.
The dollar index is +0.481 to 85.836.
On the Radar
08:30 Initial Claims
Click here for the full trading radar.
Almost Friday! Good luck!
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