June 2, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Biden May Appease Saudi Arabia

Please click here for a chart of oil futures (CL_F).

Note the following:

• The big concern for the stock market is inflation.  Rising oil prices are contributing to inflation.
• The chart shows a spike in oil on the EU plan to partially ban Russian oil.
• Leading up to the EU’s decision, the news was already built into the oil price.  Less knowledgeable investors bought on the news.  Smart money sold oil on the strength.
• The chart shows a selloff in oil on the positive news.