Oil Still Struggling

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Posted: May 26, 2021 1:31 PM
Oil Still Struggling

Source: AP Photo/Vahid Salemi, File

Markets are higher, but the prints from major indices are not telling the real story.  While those retail investor favorites are rocking, and consumer discretionary names lead the way, there are pockets of weakness, as four sectors are in the red.

S&P 500 Index

+0.25%

 

Communication Services XLC

+0.75%

 

Consumer Discretionary XLY

+1.30%

 

Consumer Staples XLP

 

-0.15%

Energy XLE

+0.93%

 

Financials XLF

+0.64%

 

Health Care XLV

 

-0.55%

Industrials XLI

+0.02%

 

Materials XLB

 

-0.33%

Real Estate XLRE

+0.78%

 

Technology XLK

 

-0.05%

Utilities XLU

+0.29%

 

Commodities are pulling back, and oil is struggling even after big drawdowns that exceeded expectations.  The question is whether commodities have peaked, as bond yields keep edging lower.

Energy Inventories

Actual

Estimates

Crude Oil

-1.7 million

-1.1 million

Gasoline

-1.7 million

-600,000

Distillates

-3.0 million

-1.9 million

WTI Oil

There are lots of key resistance points coming up – I’ll discuss on the morning hotline.

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If you missed the blood moon, don’t fret, I missed it, too.  The second-best thing is to try and make some money in the greatest money making machine in history – the stock market.