Crude-pocalypse Now!

The worst sell-off of all time? ... October 15, 2014 Archives | Unsubscribe     Crude-pocalypse Now!   The worst sell-off of all time? $80 oil is here Plus: Ebola is coming for you, too...   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Crude Awakening? Crude-pocalypse? Crude-mageddon? Let's just say that I haven't experienced a nasty crash like we're seeing right now in oil in a very, very long time. Oil prices are dropping so fast, in fact, that I can't even keep up. I'm sure that by the time you see this chart (which we made just a few minutes ago) crude will have tumbled another $1... Right now, light crude is taking the express elevator toward $80--and it doesn't look like there's much that can stop it. And it's not just the West Texas stuff that's getting mauled. As Zero Hedge pointed out yesterday, a weekly momentum gauge shows that the selloff in Brent is now the worst ever. That's remarkable... Here's the thing about hitting these oversold extremes: Oversold doesn't mean it's time to buy. In fact, a strong oversold reading can actually signal the beginnings of a major push lower. Yes, we will probably see huge snapback rallies in oil and related stocks. But these bounces will likely be short-lived. Let's turn to our energy desk and Matt Insley for some more insight into this crash... "Maybe China left the building? Maybe the Saudis finally went on the offensive? Whatever the case, the market is tasting sour crude on its lips," Matt says. "In a sense, we really are seeing the perfect storm in the crude market. Remember, unlike some less-reactive markets, crude oil is highly impacted by supply and demand. To that extent we're seeing WAY MORE supply, with U.S. shale production and OPEC opening the spigots. At the same time we're seeing WAY LESS demand in the form of lower expectations from the Eurozone to Asia." Add it all up, Matt concludes, and crude prices are under pressure... big-time. For days, Matt's been waiting for a "big" move in crude oil. Well, yesterday we got a taste of a near-$5 drop in crude prices. That's probably not the end of the carnage just yet. If history is any guide, we'll need to see a big capitulation downside move before prices regroup.         Congress did WHAT?   When I heard 84 members of Congress stuffed their money into the exact same investment, without planning it, I almost fell off my chair. Since when does Congress agree on anything?   Yet 38 Democrats and 45 Republicans are rumored to have poured millions into this one vehicle.   I urge you to take a look at this unusual strategy before something changes. You'll be shocked to discover what the government is up to behind your back. Click here.           Rude Numbers Targets, Predictions and Wild Guesses   $81 buys a barrel of oil this morning. The great energy crash of 2014 continues, with crude off another buck this morning... 1,850 is where you'll find S&P futures just before the bell. The big index is looking to open nearly 30 points lower this morning... $1,236 marks the spot for gold futures. The yellow metal is up about $2 in early trading... 210 points fell from the Nikkei today. The Japanese index continues its sharp decline from its September highs... 68% of all stocks trading on major U.S. exchanges are now below their respective 200-day moving averages...     Rude Trends When to Buy... When to Sell   Enough with all the dreary market crash talk... Frankly, I'm sick of watching the tape. So let's get down to something a little more upbeat--Ebola! "I don't understand why everybody is concerned about a few Africans coming here with Ebola. Imagine what will happen when there is an Ebola outbreak in, say, Brazil," warns a reader. "There will be huge mobs gathered at the border trying to cross and the infection rate in the mob could expand beyond comprehension, especially with no sanitary facilities. If the military shoots them, then who removes the bodies, and how?" I don't know if this is a script idea for The Walking Dead, a dire warning of potential health disaster hitting the Americas... or both. But I don't think body removal is a big part of any zombie movie plot because, well, they come back to life and eat people's brains. If the military does end up shooting hoards of infected people, I think we have a lot more to worry about than where to bury them. You know, on second thought, I think I will go back to watching the stock market vaporize money today. That feels like the safer place to be this morning... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   How to Get Anything You Want for Free -- Or Pennies on the Dollar How to Quickly Become an Oil Millionaire without Owning Land World's Most Valuable Tech Companies for 21-Cents?     BE SURE TO ADD rude@agorafinancial.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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