Whilst the US equity market appears to have begun a minor retrace to the sp'2060s, there remains the bigger issue of whether Oil has already put in a key floor ($43.58). For the Oil bears... the longer they take to renew the downward trend... the harder it will be to break into the $30s.
WTIC Oil, monthly'2, rainbow
Summary
*its late.. and I'm tired... so this will be brief.
-
Suffice to say.. with Oil trading in an increasingly stable manner.. we have the first sign of a turn on the giant monthly cycle... via a blue candle.
As ever.. how we close the month is what matters. If we do close March with a blue candle (green, certainly is not viable)... it would offer initial confirmation that $43 was a key multi-year floor.
If that is the case... it has big implications for ALL energy sector stocks.. not least the Oil/gas drillers - notably.. RIG, SDRL, and DO, all of which have considerable upside potential across the next few years.
--
Looking ahead
Wednesday has a great deal going on...
ADP jobs, PMI/ISM service sector data, EIA Oil report. Fed Beige book (2pm)
*there are no less than 3 fed officials on the loose, and Mr Market will be listening for any talk of interest rates.
--
Goodnight from London
