Snap Back Rally

Energy stocks gained the most in the S&P 500, rising 3.3%. U.S.-traded crude oil rose 3% to $42.08 a barrel partly on concerns that violence in the mid east could lead to oil-supply disruptions as the French government retaliates against Islamic State.  Defense stocks as expected, rose.  Airlines were the worst performers.

defense

I took some more profits on the P&L today just in case this rally ends up having some legs , so please check the P&L tab, I also changed some stops.

The McClellan Oscillator which measures overbought/oversold conditions, gave a decent oversold reading, so a rally from here wouldn’t surprise me, but the duration of such a rally is anybody’s guess.

See you in the morning.

 

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