Stand Back as the House of Cards Unravels
A majority of active investors have hid out in long oil and gold stock areas since last October, both in the commodities themselves and the industry stocks.Â
At the same time they have a portion of their investments in the other areas of the stock universe.Â So far the lead oil future, August oil, has broken down through the 139 floor that held for 8 days.Â Now the market is down in the middle of the previous 130-139 launch area.Â In our opinion, sustained trading below 130 on August oil will start stop-loss trading with a quick drop to 109 area before eventually going down to 90.Â This will add pressure to the general stock market as the hedge commodity area unravels and investors start dumping everything.
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