I love all these doomsday oil articles that have been coming out of late. Here's another on claiming to know that "oil will keep breaking down". The author is some disposable writer named Patti Domm. Again with the Buckaroo Banzai-esque names... Oh, by disposable I mean someone with a title of "Executive News Editor". How that title gives her any call to tell people where stock prices are going I don't know. But they wind her up and she predicts more of same, right near the likely bottom.
Domm Patti writes that "tensions are at decades highs between Saudi Arabia and Iran ,
but the market is more focused on the likelihood that the two will
drive more oil into an already oversupplied market and that Iran will
undermine an already weak pricing environment with discounts.". How does she know this? Of course, she doesn't. She's just blabbing and sheeple are foolish enough to listen and believe her. After all, it sounds logical.
I have now seen some people say that the tensions between Iran and Iraq are going to cause higher oil prices and others say it will lower oil prices. Thus we learn something about fundamentals - there really are none that pertain to stock price movements. What is Patti going to say when oil bottoms and then heads strongly up? The answer is nothing. She will begin writing about other things, knitting or basket weaving maybe. Maybe she can get Joke-Ernan (Joe Kernan) to join her in a story about growing vegetables.
If you watch CNBC I urge you to stop because their constant talking does make its way into your brain whether you want it to or not. You really are not in control of what your brain does with a lot of this info and so as a trader you are best off avoiding things that cause the growth of herding instinct.
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