After yesterdays promise from Fed. President William Dudley, making it clear that The Fed. is determined to hit their inflation targets-which caused stocks to hit new record highs, today stocks are struggling for direction on plunging crude.
It seems that stocks want to move higher especially after fed speak yesterday however, crude needs to move higher (and it will).
As I have outlined many times, the markets are virtually dependent on the price of crude being high. Not just the energy sector, but the financial sector as well as the banks have huge investments in crude, and they will not allow crude to fall beyond a point where they will get hurt. (Everything is fake).
What this means, and I have outlined this "phenomenon" recently, is we can all expect some event to occur which will push crude higher, and stocks will follow.
When will this happen?
Not so soon that it will appear suspicious, but it will happen, and that my friends, my Lions, means opportunity.
Right now the 10yr yield is stabilizing as is the dollar, and with the Fed. promising to inflate, and inflate more in order to hit their targets, stocks should move higher.
What we can expect, sometime soon again, is a rebound in crude.
Watch for it... then POUNCE.
As always, I will post new positions to my website TradersChoice.net so when the time comes we can all profit, (I have several positions posted there now).
Click here: https://www.traderschoice.net/money-page--stock-picks.html
Gregory Mannarino
