WILL OIL FALL 40% AND TAKE STOCK MARKET DOWN WITH IT? $WFT $RDS.B $MRO $XLE $XOM $CVX $HES $VLO $UWT $DWT $USO
After oil prices fell to below $49 a barrel for the first time this year, the prospect of a decline of 40% is plausible, with a probability of about 20% according to the proven adaptive ZYX Allocation Model.
Such a decrease would have the potential to take the stock market down with it.
Please note that this is in sharp contrast to my strongly bearish calls on oil when it was at $108 a barrel. I stayed bearish all the way down to $26, before turning neutral at $29.
Let’s start by looking at the long-term chart of oil. (Please click here for the annotated chart.)… Please click here or the title below to read more.
March 9, 2017