View From The Hill (Feb-3-2016): Energy Bears Endure Costs of Weaker US Dollar

Posted on Posted in Views From The Hill

Commentary

bulls-and-bears4For a moment it looked like equities were beginning to decouple from the movements in crude oil, but the energy commodity still holds plenty of sway with investors. There is no new news regarding crude oil. Everyone who is anyone knows of the oversupply story except for some of the major producers like OPEC, Russia and North America who all continue to drill and pump without pause. So, when the EIA released surplus numbers exceeding estimates for energy inventory supplies, common wisdom dictated that oil prices should fall on such bearish news or, at most, increase modestly. Initially, oil prices did fall, but then reversed with an unexpected 9% plus move in WTI crude oil.

One should not underestimate the power of the Almighty US Dollar. Even when it is weak, it is still strong enough to move both equity and energy markets. Lest we all get overexcited, I will remind readers that the trends for equities remains bearish. Today’s SP-500 rally off the 1872 and close above psychological resistance at 1900 was quite impressive. However, bulls driving equities above the January high @ 2081.56 would impress me more. With a bias to the downside, I’d be suspicious of any ensuing rallies and not surprised to see another retest of support @ 1870 levels and maybe even 1812 for good measure.

Signing off @ Hillbent…

 

 


Performance Summary

*Trends: ST = short-term; MT = Intermediate-term; LT = long-term

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Market Condition

 

Daily  Summary
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Volume Radar Alerts

  • Vol % = volume percentage greater than average volume
  • SIR = short interest ratio or days to cover
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Disclaimer

Hillbent does not provide individualized market advice. The information we publish regards securities in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification. Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

 

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