Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 19th of July.
One piece of financial news that doesn't seem to generate a lot of press is the high price of crude oil. The price of crude oil has been sneaking up for the past month and is now fast approaching $110 a barrel. That equates to a 15% price hike for anyone driving or using any kind of products that use petroleum, like plastics, paint, roof shingles, cosmetics, tires, asphalt and many many more products that we use on a daily basis.
It is interesting to note that the Fed does not include energy or food items in its inflation index.
The question has to be asked, "is the high price of crude oil going to torpedo the equity markets?"
At the moment, it would appear as though the markets are ignoring crude oil prices and focusing on earnings. If the high price of crude oil continues, I would expect it will eventually catch the eyes of smart traders and could act as a catalyst for a market break. At the moment the torpedoes are in there tubes waiting to be fired.
With a target zone of $110 per barrel for crude, I see no reason to abandon long positions and want to hold firm for longer term traders. This market could be a classic weekend play. Watch today's video and I'll explain why.
Detroit Goes Belly Up And Gold Goes Nowhere
Despite the news that the fourth largest city in the US just declared Chapter 9 bankruptcy, gold prices barely moved. In fact, gold has been moribund for the last four weeks with all our Trade Triangles still in a bear mode.
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Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.