Showing posts with label energy crash. Show all posts
Showing posts with label energy crash. Show all posts

More Worries For Consumers

energy stocksMarkets once again acted with volatility on Tuesday as continuing weakening conditions are existing for consumers. Data was released today that showed a bit of increase on the manufacturing side, however, on the consumer side, weakness remained. From the data (and what I have seen and heard) we are getting a bit of traction on the large business side, but conditions continue to remain tough for consumers. Much of this is due to government policies that have been placed on banks and lending. At any rate, many economists do not expect this to change anytime soon for the consumer.

Energy suffered in today's trading due to a judicial ruling that overruled the moratorium that had been placed on offshore drilling by President Obama. As a result, the Dow sold off almost 150 points by close after being in the green for most of the morning. Volatility is continuing to ramp up, which is dangerous element in a sensitive market.

Current bond trading is pointing to worries of deflation. That's right, deflation is still weighing heavy on many investor's mind as large amounts of activity on the short side of Treasuries have been seen. There is a lot of danger of playing in long term bonds at this point, as interest rate risk is at record high levels.

Look for another volatile day tomorrow. For you day traders, you will probably make out great. I expect to see a rather large difference between what the market opens at then where it closes. I will be very active in the morning while at the same time issuing strict stop losses. I will keep you posted. Happy Trading.

Posted in Labels: , , | 4 comments


Share/Bookmark