By Dudley Pierce Baker
With todays historic plunge in WTI oil we eagerly await the opinion of our technical go to guy, Chris Vermeulen at TheTechnicalTraders.com.
Chris told us around 12:00PM, eastern time:
…”Oil has been a bell-weather of the global economy for decades. Higher oil prices suggest demand for oil is strong, and the global economy is clicking right along. The recent move to levels below $30 somewhat concerned but also expected as the COVID-19 virus event shut down large swaths of the global economy.
I believe the global stock markets have severely mispriced the true consequences of the COVID-19 global economic shutdown and, thus, are continuing to ignore the true risks in the major markets. I also believe the real outcome of this virus event is a more protracted bottoming event taking place over the next 12 to 24+ months – not some “deep V bottom….”
Chris also, around 2:00PM, closed his long position in the SPY, making a nice profit for his followers.
I suggest you visit their website as we wait for Chris’s current opinion on the markets and crude oil.
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