MLR - PMP 12/15/14
Note to members: On November 2, we sent out a Short-Sale Set-up (SSS) report discussing the concept of anticipating the short side of the market during an uptrend in order that one might be prepared to act on the short side rather than re-act on the short side once a market breakdown becomes obvious. Part 2 of that report was sent out yesterday.
Major averages sold off Friday on higher volume with the S&P 500 and DJIA ending at their respective 50-day moving averages, which sets up the potential for a bounce, thus this morning's futures action is not surprising. Oil cracked new multi-year lows on Friday, falling to under $58 a barrel. According to Bank of America analysts, $55 is the breakeven point for half of U.S. oil producers. This put additional pressure on commodities which have been in a downtrend for months.
The fall in oil spilled over into other areas of the market as points were raised that weakened energy companies might default on bank loans, begin laying off large swaths of employees raising unemployment, and so on. Oil is currently bouncing on news of the closure of two Libyan oil terminals. That said, United Arab Emirates said that the oil cartel would accept a price slump right down to $40 per barrel.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.