The market continued Fridays rally today and the indexes were all up 1.5 to 2.5%. Crude oil came back down though on news that Iran refused to cut production. Crude ended the day back under 30 at 29.12. I’m still looking roughly at 1924 and 1950 as possible upside targets. Even if the Saudis and the Russians play patty cake with each other we still 300 million extra barrels on the market, so it doesn’t really move the needle much.
Am I excited to be long here???
That would be a resounding no. From my perch all that has happened since Friday is an oversold short covering event. Its hard to be bullish when I see bear flags forming on many charts as a result of this rally. Frankly stocks that are just setting up to be re-shorted.
Look no further than the FANG stocks: FB, AMZN, NFLX and GOOGL. All are forming bear flags within a deeper downtrend.
I stopped out on the balance of the TREE short today +14%. This is one I will want to reenter short if it rallies.
See you tomorrow.