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.