Energy is one of our pullback sectors we're looking to take advantage of.
Brent crude oil yesterday endured its largest one-day loss since the first of the year, hitting a three-month low at $104.39 a barrel while West Texas Intermediate dropped below $100, it's first such foray there since May.
Some might call at least part of it the Yellen effect.
On the NYmex August WTI fell as low as $99.91. Just a few short weeks ago Brent traded around $115. The reasons for the retracing are numerous and we've touched on them before, some of it owing to the decline in risk premium with Libya's increasing output and the Iraqi situation jumping off the front page.
Behind the scenes lurks the possibility of progress in talks between the U.S. and Iran that, if they go well, could augur for lifting sanctions that have crimped Iranian oil exports. So supply issues for now seemed to be calming markets.
We continue to like energy for the longer term and will add to our positions with any further pullbacks, though a short-term rebound in prices would not surprise.
The above chart is from Market Watch and goes along with what we've been blogging about a pullback in energy and our recent post We Don't Need Your Well-Thought-Out Advice and yesterday's Explain Yourself.
If deflation concerns get any more priced into this market, they would be a super-duper sales day coupon for super-sized soft drinks from one of New York city officials' favorite retailers, Walmart.
t. man hatter
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