If you’re ignoring the energy trade right now, you may be making a huge mistake.
So says top trader Dan Dicker of MercBloc. He thinks moves in oil could be very informing - not only for playing related stocks but the entire market!
“For the past two years, the bottom in energy has coincided with the bottom of the stock market,” he says.
And Dicker sees no reason for that correlation to change.
“It looks to me like oil is trying to form a bottom somewhere in the mid-80’s,” he says.
"We might get another downdraft but I think we're nearing the bottom for the summer."
If he's right, then stocks may be about to bounce.
Looking at the market broadly, CNBC Contributor Ron Insana seems to agree.
Fundamentally Insana isn't that worried about the market – at least not yet. Although he admits Europe is a wild card -- short of a catastrophe overseas, Insana is relatively bullish on the US stock market.
“All our economic data looks better than the rest of the world,” he reminds. “I’d think about nibbling a little.”
Trader Steve Grasso can’t get behind oil – or the market. “With the prospects of slower global growth and a possible recession in Europe – I’m negative overall,” he says.
What do you think? We want to know!
