Today Brings Upgrades In Energy While Durable Goods Crater

Here we go. As discussed last week, with many energy equities being routed, a rally is likely soon enough. It's plausible we could see gasoline back above $3.00 in the US although I would expect such a move to be short lived. So, will the gains in retailers be wiped out if oil marches higher? The drop in gasoline was putting over $300 million daily back into consumer's pockets in the US. A large tax cut indeed. We are doing a fair amount of thrashing here and it is to be expected.

As I stated before, unless you are a very adept trader, personally, I would stay well clear. Playing in energy here is going to cause tremendous heartburn for many as the volatility ratchets higher.