economy
Markets suggest stocks are on solid ground and crude oil could be in for a decline, Todd Gordon says
The VIX is saying that equities are in good shape and, if a resolution of the war is near, crude oil may plummet into the $80s, and maybe $70s, per barrel.
TL;DR
- Markets are volatile, reacting to headlines about Middle East conflict but structurally positioning for resolution.
- The VIX is suggesting that equities are in good shape, potentially due to strong earnings.
- A resolution to the conflict could cause crude oil prices to plummet into the $80s or $70s.
- Energy has outperformed technology year-to-date, but this may shift.
- The JETS ETF shows a bullish signal, indicating a potential confirmation of S&P 500's current trading level.
- A breakdown in the XLK/XLE ratio trendline could signal technology's advantage over energy.