With the recent collapse in the price of oil, I'm in the camp that thinks this turmoil could have unforeseen consequences. Sure.. . I know why retail stocks are higher. Pay less for gas at the pump, the more money for the consumer to buy all the crap that's peddled to them on a daily basis. It makes sense. The consumer has hundreds of extra dollars in their pockets to buy all the crap the American Dream dictates they must buy. That's fine and dandy. And you know what? It makes sense right here. It does. Assuming the price of oil was properly hedged by oil dependent companies... lower oil prices are the best stimulus check our generation has ever seen.
Monday Morning Market Video – $USO $SPY $CAT $AAPL $WFM $HD $NFLX $GLD $FCX $GDX $T $VZ
Monday Morning Reads – 12/15/14
Stock futures along with Crude oil futures, are higher this morning to start the week. Last week was the worst week for the Dow Jones Industrial Average since 2011. Oil remains a hot topic and if it can at least hold the overnight low, there will be plenty of talk concerning a bottom. I think regardless of a bottom oil needs to calm itself down. If that happens we could be looking at another V bottom for stocks.
Here is what I am reading to start the week:
The Week Ahead Webinar December 14th, 2014
Why This Year’s Santa Claus Rally Could Be Very Strong
This last week the market took a tremendous hit. The S&P 500 had its worst week in a few years, down 3.5% while the VIX shot up over 80%. This has left many Wall Street analysts questioning whether there will be a Santa Claus Rally. I may be the only one saying this, but I actually think that this pullback increases the likelihood of a Santa Claus Rally. So why do I feel this?