US Market on 13 Feb 2023 (Mon) Energy Stocks - Time To Exit?
What Were The Catalysts That Resulted In US Market Tumbling Down ?
- Rise in treasury yield (2-year treasury note rose to 4.507%, while 10-year treasury note was at 3.682%).
- Thu (09 Feb) jobless claims rose to 195,000 for week ending 04 Feb 2023.
- A simple calculation performed will show that 4-week moving average actually decreased from 191,750 to 189,250 - a fall of -2,500 claims from previous week's readings. This is not actually good news to Mr Powell and his team.
Overall the US market closed off Feb 2023, on a downturned note.
- DJIA ended the week down-0.17%.
- S&P 500 fell-1.11%,
- Nasdaq slid-2.41%, marking it, its biggest weekly losses since Dec 2022.
When Market Closed :
- DJIA : +0.50% (+169.39 to 33,869.27).
- S&P 500 : +0.22% (+8.96 to 4,090.46).
- Nasdaq : -0.61% (-71.46 to 11,718.12).
Looking At The 3 Indexes' Moving Averages :
Refering to respective Index's Moving Averages (especially Dow Jones) on 09 Feb 2023, its MA for 200-day & 50-day were "Red" and "Amber" respectively.
3 Indexes' Moving Averages on 10 Feb 2023 (Fri)
- Nice to note that all indexes are in the "green" zone.
Is It Time To Exit Energy Stocks ?
Original doc - https://finance.yahoo.com/news/oil-falls-demand-concerns-impact-020324112.html
Precursor - please read above linked-article and form your own opinion first ok. Thanks.
Crude Oil price movment for the past One Month
- For Jan 2023, oil price has peaked around $82.40.
- As of last Fri's price, it has lost a bit of footing, closing at $78.89.
- Resumption of Azerbaijani oil exports from Turkey's Ceyhan terminal also relieved supply concerns. This is in the midst of the earthquake disaster in Turkey.
- Finally, the weakening crude demand is anticipated because inflation report (CPI Jan 2023 index out tomorrow) may force the Fed to tighten policy much more aggressively
- Examples of Energy stocks eg. $Exxon Mobil(XOM)$, $Chevron(CVX)$ , $ConocoPhillips(COP)$ - will it be a prudent move to partial-offload energy stocks in your holdings now ?
- Repurchase them later on when prices recover and is ready to rock & rumble again ?
NOTE : Perform your due diligence before loading or off-loading energy stock/s in your portfolio !!
How Will US Market Perform Today 13 Feb 2022 ?
Think it is safe to assume that Wall Street is acting jittery on the run up to Jan 2023 CPI Report announcement. Looking at Indexes's futures :
- Looking at US Pre-market indicators (above diagram) - All Red !
- Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Red & Red!
- Asia markets (ASX - Red !, Nikkei - Red !, KOPSI - Red !, HSI - Red !)
- EU markets - -(DAX - Red !, FTSE - Red !, CAC - Red !).
- Not a pretty sight if I may say so.
Without any Mega Cap stock releasing their Q4 2022 Earnings report this morning and no official report coming out - fear is for the worse to happen !
- Do you think the market will end higher by the time market close ?
- Do you think its timely to exit energy stock in the immediate to short term ?
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The rating is very important to me. Thanks Thanks !!