As you may well know, crude oil (NYMEX:CL.Z14.E) prices have been dropping precipitously this year. In fact, they are at their lowest level in two years. I have a theory as to why oil prices are dropping.
I believe one of the great unsung victories for automobile manufacturers are the new cars they are producing that are getting, on average, an amazing 25 miles per gallon. That is a quantum leap from just a few years ago. With hybrids (cross between electric and gasoline) becoming more mainstream and more motorists turning in their old cars to buy new, more efficient cars, I would expect to see this trend continue. Better cars produce better mileage, therefore their need to go to the pump to fill up is less frequent than before.
Last week I witnessed the markets having one of their best weeks ever, up close to 4%. This strong market action for the week put a smile on a lot of people's faces, however it is still too early to confirm a major trend reversal to the upside.
I also mentioned in my last video that I liked Apple Inc. (NASDAQ:AAPL), which was making new all-time highs on Friday, along with Alibaba Group Holding Limited (NYSE:BABA) and Facebook Inc. (NASDAQ:FB). I will be checking in on those stocks today to see how they're doing. Also in today's video, I'll be looking at crude oil (NYMEX:CL.Z14.E), gold (FOREX:XAUUSDO), the U.S. Dollar Index (NYBOT:DX) and the major indices.
You are more than welcome to join in the conversation or leave your comment below this post.
It's going to be an interesting week for sure, so stay tuned.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
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