Oil's edged lower Thursday on news that China cut fuel subsidies. But will lower crude prices help stocks at this point?
I know investors are getting all hopped up that oil is down to $132, but a little bit of giveback in crude isn’t going to do anything, says Oppenheimer chief market technician Carter Worth.
It’s not going to change the spending habits of Americans, it’s not going to save the financial crisis in regional banks or put the home builders back in business.
But what it would do is this. It would kill the energy and ag names. And those are the only sectors holding the market up right now. If these stocks lose their underpinning we all lose.
If crude does pull back how would you trade?
I’d be long technology, replies Worth. But only because that’s how I see the rotation of money. On a pull back money would go out of energy and into technology because there are pockets that have been holding up quite well. Specifically, I’d look at the semiconductor stocks.
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