At this point, we are getting used to wild gyrations in oil prices. But let’s not forget how abnormal this really is.
At this point, we are getting used to wild gyrations in oil prices. But let’s not forget how abnormal this really is. WTI Crude prices, down $5/barrel this morning, are providing a boost to the industrials, with 27 of the 30 Dow stocks showing premarket gains. Dow futures point to a jump of about 500 points. However, relative to the size of this move in crude, the equity market reaction can only be described as muted.
Weighing down the chip sector is Korea’s KOSPI, which fell 5% overnight. US chips are suffering in the premarket. INTC, AMD, and MU are all showing declines of more than 2%. Experienced investors, though, will keep an eye on the key near term support levels that were established in the wake of the Situational Awareness disclosure last week. Panic overseas may be creating opportunities here at home.
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