- With Feb Crude futures down another 3+% and looks to be heading to the Psychologically important $50 area there is some pre-market strength in some of hte more sensitive sectors. - Areas to watch are certainly airlines and watch for the DJ Transportation average to get a pust from lower oil costs. JBLU LUV CAL AMR LCC UAUA AAI RCl CCL all ticking higher in the pre-market. Expect strength in the DJ Transportation average. - Look for money to possibley find its way to some of the consumer discretionary names. ACAT PII MNC THO WGO HOG. Note HZO got crushed yesterday after cutting guidance. Also the Dollar stores could get a boost as the low end consumer gets some relief. NDN DG FDO FRED
My opinion of crude is that it is a very leading economic indicator globally as we are a global village now and are an oil based economy. The continued pressure on crude coupled with the falloff in global freight bookings is a telltale sign that we are heading for a longer period of slow growth/recession. Listen to the indicators, not the fools on CNBC.
- Agree with your longer term assesment especially when in context with the overall decline in commodity prices. But that doesnt preclude traders from focusing on very short term implications. Specialists can always jam stocks on the open to create an early scalping opportunity and that was the post.