Today's Bounce

[bearcatbob]

I was out today and I saw during the day the market was down big again. When I got home and looked at my E&P shares I was stunned to see some were up big. IN particular - SFY made a huge jump at the end of the day. It was not alone.

Does anyone have any ideas?

Bob

[setliff]

yeah, crude bounced off a low of 80. wait till tomorrow. it is now down--this thing is not yet over.

jim

[dan_s]

WTI could go lower, but there are a lot of contracts sold short which must be covered. It won't take much to cause a major short covering rally in WTI.
As I tried to point out at today's luncheon, the recent drop in crude oil prices has more to do with the traders than the fundamentals. The "Perfect Storm" that caused the big dip is about to come to an end.