Daily Alert – Wednesday 6th July 2022: Whoops, they did it again

Mark NugentDaily Alert, July 2022

Daily Alert – Wednesday 6th July 2022: Whoops, they did it again

Good morning.

After two whole days of sensory deprivation caused by a slack economic calendar, sections of the market decided to create some drama out of thin air. Like the boy who cried wolf, the oil market, and other commodities, decided…recession…and WTI dropped 10 percent in a handful of hours.

“While the odds of a recession are indeed rising, it is premature for the oil market to be succumbing to such concerns,” said Damien Courvalin of Goldman Sachs. Further, Goldman reported that global consumption was greater than supply and inventory levels were getting critically low. Hmmm…

I know a reversal opportunity when I see one, so I’ll be looking to go long on WTI via a pending order. Market over-reactions almost always reverse.

We have the FOMC Minutes later tonight. The market will, as always, pore over every word, looking for meaning that may or may not be there.

We’ll be back tomorrow.

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