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Cuttone & Co.’s Ben Willis, GRZ Energy Anthony Grisanti and Option Pit Mentoring and Consulting’s Mark Sebastian on the outlook for equities a...
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-- show where we have no actors we got the real thing traders that the New York Stock Exchange CME group and the not next.
-- what analysts were looking at the S&P moving higher figure above that key level of thirteen fifty that we talked about Friday what's the next level that you're looking for -- -- -- -- about thirteen.
That's called certainly has the feel the problem -- traders on the floor is that there's no volume.
But this market reminds me of the anti and arias are waiting for the fat latest saying and every -- I think it's gonna roll over they hit another high note.
-- to the market won't give up its amazing the most professional traders he'll talk to a looking for a pullback of some kind and we just -- got it well.
But fat lady -- -- exactly singing at the moment down at -- not expert Anthony were setting oil is pulling back albeit it's just.
So slightly but certainly this is now exploding -- the the average American sort of focus about at gasoline and -- the panic people are saying five dollars a gallon gasoline is coming other saying I you know what three dollars is more like it what do you think.
I think it's probably closer to five dollars Liz I'm looking at an average probably between 4155.
Dollars.
With a lot of areas especially in the coast to be five dollars at the pump by -- say Independence Day.
OK but then what do you see I mean as we look at that what would bring it down what would sort of put a total stop to this moving higher in the market.
Well you know that the bad news about that is I think at any kind of economic slowdown that we're seeing or something that comes out of -- -- you know the Middle East without ran in Syria and everything else that they can make peace.
Then we could see lower prices but.
You don't really that's what's been -- -- it's it's I ran so if we can get something positive out of that.
Then you'll see lower -- -- what's your level for crude right now we are standing exactly at 10860.
It's got good resistance at the -- -- ten level.
All right we've this is -- second time we've been up near that 977 today 995 the other day.
After that it's small resistance at 112 than 115 our supports at 106.
And as far as gasoline goes there's not a whole lot here until he gets -- -- eighteen to reach -- which is about.
Six cents while we're hiring and we should mention to natural gas fully backed by 4% -- -- overall on natural gas could imagine that every car ran on natural gas.
Oh and she is only two dollars and change per billion British thermal units up pictures of the art let's bring -- Mark Sebastian at the CME so we got the good numbers.
But we also -- the -- you know approaching something let's teach our viewers something that all of your bank have to pay the quality of they have this this trading band that actually compares things relative to previous trades but.
Looking at that what do you think really happens here is this market want to suddenly panic and pull back.
Well you know it's it's a kind of an interesting phenomenon what's going on right now it's never seen anything like this.
Clearly Europe is now kind of out of the picture at least in the immediate because we had good numbers this morning and we rally off the bad G-20 number.
So then looking -- option involves.
We have a market that is moving at an annualized rate of about.
8%.
And as you said looking at the -- it's at 18%.
Out.
There's a lot of pent up fear here but at least we wonder whether we've actually -- this market already.
There is this concept of when everybody has insurance.
They feel lot better about going long so.
One of my questions here is.
If oil can stay below 110.
Is there any stopping this market.
All through that 110 global oil and -- -- are actually gonna correlate pretty well.
-- once oil gets too high and it starts to affect demand that's when we see those correlation breaks -- As I look here.
I think with the -- -- like this and the market seen a rally at this nice slow pace.
Debt may be a really really bullish sign for the market as long as oil stays.
Low one can look at themselves -- a company what then jump in here because he's down disorganized watching all the action here and as we stand at about about thirteen 1025.
Do you agree do you think that's a correct assessment that as long as oil stays below that key level of a hundred -- that we might still see some real rally.
Why sort of yeah.
All oil oil is at functions almost similar -- -- -- so much money pouring into that market and it's probably money that should more or less be in the equity market but that's not.
The way the money is flowing right now you're seeing -- flow into the risk trades if you -- higher beta trade which would be natural which would be crude oil load B gold.
And the like so.
The IA Iger said we're looking for the market pull -- you saw the vexed that the TVX ETF trade up on huge volume.
Going into this month you can look at -- that on any bar chart so professional traders are telling you this market is set to roll over -- we continue to fight that trend as we continue to go higher.
But with no volume which tells me the average investor is still sitting in nine their portfolios long US treasuries looking a -- into this fix they've fixed income and not coming in and equities until that money -- changes.
I don't think equities have a chance to continue this upside move.
-- -- they're late to the party we should take a quick look at the big board gentlemen take a look thirteen 1025 just two points.
Off the high of the day high today announced three points thirteen 1027.
Again Wall Street -- this wall of worry and we started telling you this.
About November here on the show but remember the S&P has recovered everything it lost lost about nineteen point 4% for April 20 ninth to October 3.
Don't wanna -- bunch of numbers that you but we've recovered all of that now so watching that we see some real action here thank you so much gentlemen for joining us on the floor show but this conversation.
Actually is very much at sort of the forefront of what a lot of you probably thought about or talked about your family or friends over the weekend that this high gas.
