The market has become a high-wire circus.
After rocketing 312 points higher just yesterday, the Dow is set to drop 325 at the open this morning. Even NASDAQ futures are down 185. S&P 500 futures are down 48. Aside from the debt ceiling, geopolitical issues, inflationary fears, and the Federal Reserve, an energy price surge is ticking off quite a few investors. Last checked, natural gas hit a 13-year high, as oil surged to a seven-year high, now trading at $78.64.
While we could always buy oil stocks, such as Northern Oil and Gas (NOG), or even Murphy Oil (MUR), both have become technically oversold and ready to drop.
Let’s do this for today.
Let’s stay on the sidelines this morning. If the storm clouds clear up, and markets decide to pick a direction, we can always issue a trade idea a bit later. Right now, let’s just be safe.