• 745 days Will The ECB Continue To Hike Rates?
  • 746 days Forbes: Aramco Remains Largest Company In The Middle East
  • 748 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,147 days Could Crypto Overtake Traditional Investment?
  • 1,152 days Americans Still Quitting Jobs At Record Pace
  • 1,154 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,157 days Is The Dollar Too Strong?
  • 1,157 days Big Tech Disappoints Investors on Earnings Calls
  • 1,158 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,160 days China Is Quietly Trying To Distance Itself From Russia
  • 1,160 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,164 days Crypto Investors Won Big In 2021
  • 1,164 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,165 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,167 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,168 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,171 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,172 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,172 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,174 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Energy: A Double-Edged Sword For Markets

Light Economic Calendar

With little in the way of market moving announcements Monday, traders tended to focus on changes in the energy markets. From The Wall Street Journal:

Oil futures shed 0.7% to $92.66 a barrel, their lowest price since January, amid concerns that demand isn't keeping pace with booming supply. The pullback knocked shares of energy companies.

Late in Monday's session, the Energy Select Sector SPDR ETF (XLE) was down 1.51%. Energy recently completed all three steps for a change in trend. A good baby step for XLE would be to retake $99.00.

XLE Energy Select Sector SPDR NYSE + BATS


Are Equity Red Flags Starting To Wave?

In order to gain a better understanding of the current investment landscape, this week's video compares 2014 to 1987, 1998, 2002, 2003, 2008, and 2009.


Doubled-Edged Sword

Lower oil prices can be good news for consumers. However, if oil prices remain depressed it eventually starts to impact the earnings of energy companies. News out of China contributed to oil's pullback Monday. From Reuters:

China's import growth unexpectedly fell for the second consecutive month in August, posting its worst performance in over a year and stoking speculation about whether authorities should loosen policy further to revive domestic demand.


Investment Implications - The Weight Of The Evidence

Monday's session did little to impact the intermediate-term outlook for stocks. Therefore, we continue to hold an equity-heavy portfolio with U.S. stocks (SPY), leading sectors (XLK), along with a relatively small stake in U.S. Treasuries (TLT). Stock market bears would prefer to see a push below 1985 on the S&P 500.

 

Back to homepage

Leave a comment

Leave a comment