Wednesday, February 18, 2015

The Market On Wednesday

  Good morning. It is 2 degrees and sunny here in the Upper Hudson Valley. We are getting pummeled with cold temperatures and the trend continues. The forecast is predicting that we get into the upper 20s today which would literally represent a warming trend. One thing that cannot be denied though is that the Sun is getting higher and higher in the sky. Sunset around here occurs at 5:30 and sunrise is at 6:46, add in the 1/2 hour of daylight before and after sunrise and sunset and we are close to 12 hours of daylight now.

  At 8:40 a.m. ET futures are slightly lower and the price of oil per barrel is down with light crude trading around $52.33. The market is poised to open lower.

  In my estimation it is Warren Buffet dumping his shares of Exxon Mobil and ConocoPhillips that is the morning's salient news. I suspect panic mode is setting in surrounding energy equities in some sections of the investment world. There is so much speculation about oil prices going on it's wild. Yesterday I read a Bloomberg article predicting oil as low as $10 a barrel. There is a big shake out going on and lots of economies both personal and national are struggling, yet recall that in investment often times when someone loses someone else gains.

CNN: Stocks: 4 things to know before the open
Investors are reacting to new filings that show famed investor Warren Buffett dumped his stakes in oil companies Exxon Mobil and ConocoPhillips.

At 2 p.m. the Federal Reserve will release the minutes from its latest monetary policy meeting.

2 comments:

Glynn Kalara said...

Gas prices are now riding higher on nothing more then speculation. The reality of the actual oil market though is demand has gone down and there is a 2 mil. gal. a day surplus! So, I expect to see gas prices soar back up to $3 a gal. anyway. Why? Because , reality and greed are not necessarily connected in this situation.

Jim Sande said...

You got that right. I am reading stuff that goes all over the charts with predictions within the last month that oil goes as low as $10 a barrel, that was on Bloomberg, and then up to $200 a barrel from the Saudi dude. Right now $10 a barrel seems more feasible, but it's been in the $50 to $55 range for about 10 days or so.