This week I was over at Fox Business to talk about the US Stock Market and Crude Oil prices as we head into the new year. Long time readers know that we try and ignore economics or anything else that is not related to market price and human behavior. So in this segment we focus just on the technicals for Large-cap stocks, Mid-caps and Crude Oil. With Oil currently more than 65% away from the mean, defined by the 200 day moving average, I believe the rubber band is stretched enough to get a mean reversion going very soon. This in addition to extreme sentiment levels not seen since the early 2009 bottom, have us looking for an entry point on the long side. If momentum diverges positively at these new lows and prices break out above $55.50 early in the year, we could get a monster squeeze out of this market that can last longer than most people would expect. This is a characteristic of these types of extreme sentiment unwinds and we’re ready for it!
Here is the full clip:
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Tags: $CL_F $USO $SPX $SPY $ES_F $MDY $MID