Both manufacturing and services sectors are slowing down again.

Comments (8)
No. 1-1
Scott
Scott

DO and RIG were hammered today. I suppose oil will have to go >$100 before they recover.

7 replies

Sean Hyman
Sean Hyman

Editor

That's because oil was hammered today. But is oil trending upward or downward? That's where to keep the focus, rather than how much its up or down on any one given day. Remember, oil is volatile. Therefore, oil stocks are volatile.

Nah, but $70s-$80's would be helpful. That's when it's started to perk up the best in the past.

Sean Hyman
Sean Hyman

Editor

Keep in mind too that a slowing U.S. and global economy likely doesn't use quite as much energy and therefore demand could pare back a bit, if so.

On the other hand, if the dollar starts falling, that may provide some good support and lift to oil. Oil isn't as highly inversely correlated to the dollar as gold is...but it's still a big factor.

Sean Hyman
Sean Hyman

Editor

Remember: Oil was down almost 6% today.

Scott
Scott

Thank you for pointing out the inverse relationship between the dollar and oil prices. That at least gives me something to look forward to.

Sean Hyman
Sean Hyman

Editor

Ultimately, you're just experiencing the sentiment of wave C. So just know that and don't fall prey to it.

But yes, I personally think that a stock sell-off will cause foreigners to repatriate money back home and that will weigh upon the dollar when that happens. Today was a sharp reversal lower in the dollar. Too early to say if this is it though.

rcwarship
rcwarship

I've learned to look for this sentiment in my thinking, great stuff: "Ultimately, you're just experiencing the sentiment of wave C. So just know that and don't fall prey to it." Best Regards, Jon

Sean Hyman
Sean Hyman

Editor

Yeah, it’s the power of knowing Elliott Waves and each phase’s traits. We can recognize them but not have to fall prey to them. In fact, I get very bullish in waves C/2 when most are bearish.