Merry Christmas and A Little on the Markets...
Well fellow traders I hope that you are enjoying some down time with your families and friends. It is the time of year where we seem to value friendship and relations the most although I encourage you to practice this ideology all through the year. Don't just save it for one time of the year.
I am grateful for all that I have. I am lucky and I am blessed. I cannot look at my life in any other way even if I were penniless. There is so much to be grateful for in this day and age. So many good things that we have and so many freebies that put us ahead of most of the world.
In all honesty I really could care less about the markets although I usually keep you on the right side of things. In twenty years time the world is likely to be a very different place and I think a lot of the pains we feel today will be a thing of the past. Money is just a means to an end. It is important to be able to live how you desire to live but other than that it should not occupy too much of your time.
So lets look at some key bell weather markets that can and often do signal what is likely to come.
In the energy sector we see that oil has continued to fall. It now rests at the 42 mark. A level not seen since 2014. This is in my view the likely bottom or dam close to it. Yes it could fall further but not without some serious repercussions to other market areas and more importantly debt. The stock indexes have not reflected oils crash but they are looking a little bit ominous although still quite a ways from what I would consider bear territory. You can see by the charts below where the markets rest. These are monthly charts and are as a rule pretty powerful in the nature of time.
Oil has given back all its significant gains from the early 2014 period. Very quickly I might add which begs the question what is going on?
Well as a society we are still reliant on the black goo to a degree but no where near where we once were. There are a lot of alternative energy options now and with oil resting slightly below where fair market value is this is not a big concern. The perma bears would have you believe that all hell is breaking loose and the oil market is simply a reflection of things to come.
Not so.
I doubt it will stay in this range for very long or if it is down here there must be heavy longs that are being cleaned out.
The NASDAQ is the index falling the most in relation to its highs but it is still not technically in bear territory. You can see by the chart below that it has fallen substantially from its highs but it is now where near where bear territory is.
If you are thinking that the plunge protection team will step in, the simple answer is, they never left so I don't think that the markets will fall too much further. They could and if they do then we can start to look. At any point in the past you could have listened to my advice and been flat. If you are still in I would once again encourage you to take some off the table. You can always get back in at a later date.
I will be looking to buy oil here or at a slightly lower rate to hold for the long term.
Well stay tuned to my holiday forecast which is coming to you over the next few days before the new year and you can see what I think will be happening in 2019.
Cheers and blessings to you and yours!
I am grateful for all that I have. I am lucky and I am blessed. I cannot look at my life in any other way even if I were penniless. There is so much to be grateful for in this day and age. So many good things that we have and so many freebies that put us ahead of most of the world.
In all honesty I really could care less about the markets although I usually keep you on the right side of things. In twenty years time the world is likely to be a very different place and I think a lot of the pains we feel today will be a thing of the past. Money is just a means to an end. It is important to be able to live how you desire to live but other than that it should not occupy too much of your time.
So lets look at some key bell weather markets that can and often do signal what is likely to come.
In the energy sector we see that oil has continued to fall. It now rests at the 42 mark. A level not seen since 2014. This is in my view the likely bottom or dam close to it. Yes it could fall further but not without some serious repercussions to other market areas and more importantly debt. The stock indexes have not reflected oils crash but they are looking a little bit ominous although still quite a ways from what I would consider bear territory. You can see by the charts below where the markets rest. These are monthly charts and are as a rule pretty powerful in the nature of time.
Oil has given back all its significant gains from the early 2014 period. Very quickly I might add which begs the question what is going on?
Well as a society we are still reliant on the black goo to a degree but no where near where we once were. There are a lot of alternative energy options now and with oil resting slightly below where fair market value is this is not a big concern. The perma bears would have you believe that all hell is breaking loose and the oil market is simply a reflection of things to come.
Not so.
I doubt it will stay in this range for very long or if it is down here there must be heavy longs that are being cleaned out.
The NASDAQ is the index falling the most in relation to its highs but it is still not technically in bear territory. You can see by the chart below that it has fallen substantially from its highs but it is now where near where bear territory is.
If you are thinking that the plunge protection team will step in, the simple answer is, they never left so I don't think that the markets will fall too much further. They could and if they do then we can start to look. At any point in the past you could have listened to my advice and been flat. If you are still in I would once again encourage you to take some off the table. You can always get back in at a later date.
I will be looking to buy oil here or at a slightly lower rate to hold for the long term.
Well stay tuned to my holiday forecast which is coming to you over the next few days before the new year and you can see what I think will be happening in 2019.
Cheers and blessings to you and yours!
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