The bottom could be in for crushed crude oil, strategist says

Following crude oil's fifth straight week of losses and the energy sector's worst week in nine months, 55 Institutional market strategist Max Wolff breaks down three key market themes he is watching for next week.

1. Crude oil

Crude oil on Friday posted its fifth straight week of losses; that's its longest losing streak since August 2015. The commodity has now sunk nearly 20 percent this year, and Wolff is predicting next week oil could see "a little rally off the bottom here."

"Everybody seems to think it's going to go lower. We think oil's self-correcting. It's at the low end of the range. We think it comes back into where it spent most of its time above $44 or $45 [per barrel]," Wolff said Friday on CNBC's "Trading Nation."

2. Health-care reform

Wolff is keeping an eye on the Senate health-care bill.

"We tend to think it will get bogged down, and that will be pretty negative news for health insurers," he said Friday.

However, he doesn't think it will be negative for pharmaceutical companies and medical device manufacturers. He sees them benefitting from "that logjam in the Senate."

The S&P health-care sector just turned in its best week of the year.

3. The World Economic Forum in China

Next week the World Economic Forum is set to convene in Dalian, China. Wolff is watching for the results of the meeting, which is sometimes called "Summer Davos."

"We expect China to come out in a leadership mode and announce all kinds of plans to be a global leader and to work closely with Europe, kind of putting the shade on the U.S. right now," he said.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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