Escalating Trade Tensions and Oil Production

Hello traders everywhere. The dominant topic of the week has been the escalating trade tensions between the U.S. and China after Trump threatened to impose tariffs on $200 billion of Chinese imports and Beijing vowed to retaliate. But the market got a bit of a reprieve on Friday after OPEC agreed to a modest increase in crude oil production at their meeting in Vienna.

That move by OPEC helped the Dow Jones Industrial avoid what was shaping up to be it's worst daily loss (9 days) record in nearly forty years. The decision by OPEC has let the DOW post a daily gain led by the energy stocks, but it's still posting a weekly loss of -1.86% on the week, its second weekly loss of the month. Much like the DOW the S&P 500 is posting a weekly loss of -.70% and the NASDAQ has joined the weekly loss party for the first time in four weeks with a loos -.59% on recent weakness on Friday.

Trade Tensions Oil Production

Crude oil has jumped +5.6% on the week, but most of those gains are from today as it jumped +4.4% after news of the OPEC decision. The Organization of the Petroleum Exporting Countries and other top crude producers, meeting in Vienna, agreed to raise output from July by about 1 million barrels per day (bpd) after its de facto leader Saudi Arabia persuaded Iran to cooperate in efforts to reduce the crude price and avoid a supply shortage.

The real increase, however, will be between 600,000 to 800,000 bpd because several countries that recently suffered production declines will struggle to reach full quotas, while other producers may not be able to fill the gap in production.

Key Levels To Watch Next Week:

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Leading Cannabis Biotech Could Soar

Analysis originally distributed on Juney 13, 2018 By: Michael Vodicka of Cannabis Stock Trades

Blockbuster drugs are the holy grail of the pharmaceutical industry.

When annual sales of a hot new drug break the $1 billion mark, investors are usually rewarded with big gains.

This is what began happening in 2012 with Gilead Sciences Inc. (GILD).

In 2013, the FDA approved Gilead’s hepatitis C drug Sovaldi.

In 2014, Gilead scored an FDA approval for another Hep C drug, Harvoni.

Both drugs went on to quickly hit blockbuster status – sending shares of Gilead soaring – jumping more than 200% in the next two years.

Cannabis Biotech

Today, the young cannabis industry is in hot pursuit of its first-ever cannabis blockbuster – and it looks like a winner could be crowned on June 27. Continue reading "Leading Cannabis Biotech Could Soar"

FAANG Stocks Push NASDAQ To Record High

Hello traders everywhere. The FAANG stocks, Facebook, Alphabet, Amazon, Netflix, and Apple, are up between 0.2% and 3.4% on the day once again pushing the NASDAQ to a new all-time high over $7,800.00. In fact, not only is the NASDAQ posting record highs, so are Facebook, Netflix, and Amazon.

The move higher comes after the stock market was slammed on Monday and Tuesday, with the DOW erasing its year-to-date gains and presently trading lower for the year, after President Donald Trump's latest tariff threats against Chinese goods.

FAANG stocks

In other news, The 30-stock DOW is set to lose its last remaining original member, General Electric Co. (GE) The 126-year-old industrial conglomerate will be replaced by drug store retailer Walgreens Boots Alliance, Inc. (WBA) on June 26. Walgreens stock rose 5.3% on the news while GE stock has lost 1.5% after trading higher to start the day.

Key Levels To Watch This Week:

Continue reading "FAANG Stocks Push NASDAQ To Record High"

Does Oil Hold The Key To The Canadian Dollar

Aibek Burabayev - INO.com Contributor - Metals - Canadian Dollar


At the end of last month, I called for a substantial upcoming weakness in crude oil as the market could have finished the long-lasting consolidation after the earlier crash from 100+ levels. Indeed, oil lost almost $4 from that time and now is rebounding as markets naturally move in zigzags.

Oil-related currencies also suffer, and in this post, I would like to share with you an exciting chart setup with tremendous profit potential for one of such currency, the Canadian Dollar (CAD) also known as “Loonie” among traders.

Before that, I built a chart to demonstrate the correlation between WTI crude oil and the Canadian Dollar.

Chart 1. WTI futures Vs. Canadian dollar futures: Perfect Correlation

Canadian Dollar
Chart courtesy of tradingview.com

In the chart above the WTI futures graph is black on the right scale and the Canadian Dollar futures graph (in US$ per 1 CAD) is red on the left scale. I didn’t add any annotations on the chart as you can clearly see that the correlation is just perfect and the most important fact is that the crucial market phases like strong moves and consolidations coincide in time. The Canadian Dollar tends to overshoot WTI amid market strength, but it is quite moderate during market weakness. Continue reading "Does Oil Hold The Key To The Canadian Dollar"

Global Supply/Demand Oil Outlook

Robert Boslego - INO.com Contributor - Energies - Oil Outlook


The Energy Information Administration updated its global supply/demand oil outlook for June. It shows total OECD oil inventories rising through November, ending the year about where they were last December.

Oil Outlook

This is in contrast to the rapid decline in stocks over the second half of 2017, and that enabled oil prices to rise. If this forecast is realized, it should have a moderating impact on prices, taking away some of the risk premium embedded in futures prices.

The stock projections are based on a number of assumptions: Continue reading "Global Supply/Demand Oil Outlook"