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Afternoon Note

Tough Sledding but No Panic

By Charles Payne, CEO & Principal Analyst
9/16/2019 1:09 PM

Stocks have been under pressure all session, and while the damage isn’t significant, it’s widespread with Energy the only winner on the day.  I think this would have been a lower session even without attacks on Saudi oil production because the biggest investors are still grappling with the next move from the Federal Reserve.

Interestingly, the mega oil producers are only up fractionally, but we are seeing monster squeezes across the board on names that shorts have feasted on like carcasses for years.

Oil Stock

Short % of Float

Percentage Gain

RES

50%

15%

CRZO

46%

16%

CPE

41%

15%

CHK

29%

11%

WLL

23%

37%

APA

12%

10%

 

It remains to be seen how much further oil rallies, but there is a ton of upside potential, which should be achieve through demand not saber-rattling.

S&P 500 Index

 

-0.46%

Communication Services (XLC)

 

-0.62%

Consumer Discretionary (XLY)

 

-1.21%

Consumer Staples (XLP)

 

-0.96%

Energy (XLE)

+2.62%

 

Financials (XLF)

 

-0.70%

Health Care (XLV)

 

-0.19%

Industrials (XLI)

 

-0.27%

Materials (XLB)

 

-1.53%

Real Estate (XLRE)

+0.62%

 

Technology (XLK)

 

-0.32%

Utilities (XLU)

 

-0.02%

U.S. Economic Data

The Empire Fed Report came in below estimates with most aspects of the report sagging.

I still think the Fed cuts 150 basis points this year. The odds actually edged higher with the economic data in China domestically, and news on crude oil and geopolitical risks.

 


Comments
I hope you are right about the cuts Charles but do NOT harbor much hope with this dunderhead. He talks a good game but really does not get scale impact and magnitude. He has been a day late and a dollar short from day one. Trump has been way more patient than I would have been. I have fired him three iterations or more ago. Every time we have an expectation and a chance for hope he dashes it to pieces. It is like the movie groundhog day, but unlike the movie which finally has a happy ending, this never does lol!

Ray Weldon on 9/16/2019 2:02:22 PM
 

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