Oil Prices Are Skyrocketing: What This Means For Your Stocks
In a Nutshell
Oil prices surged to $94, erasing $350B in market value, while investors await this week's CPI and PPI inflation data that will decide if the Fed hikes rates on September 16. Despite the flat session, high-momentum names like Bloom Energy (+S&P 500 inclusion) and Intel (+9% on a new target) keep pushing higher, while CoreWeave—losing $1.9B annually—offers a potential short with an 11:1 reward-to-risk ratio if it fails at resistance.
These notes were generated by AI and may contain inaccuracies.
Over $350 billion has been wiped from the US market today as oil reclaims three-month highs, breaking oil surges to $94, hitting the highest level in three months as Iran threatens economic warfare against the US. Although the day is slightly negative, the NASDAQ market is pretty much break even from its highs to its overall lows. It's a relatively flat day and markets are still trading nearly at all-time highs when zoomed out. The panic definitely has not sunk in just yet.
Oracle and Adobe report earnings this week on Thursday, 1 hour before markets open or during the pre-market session. These are the list of companies that are publicly reporting earnings this week. This week's focus is inflation, inflation, inflation. The channel will be live streaming these major inflation reports.
This week includes tomorrow's ADP employment change, the 10-year bond auction on Thursday, PPI data report, unemployment claims, and Friday is the big day with the CPI data report, consumer price inflation report. Consumer price index inflation report.
The Federal Reserve next week on September 16th is supposed to decide if they're going to be raising or pausing on their rate decision. This week's inflation report will pretty much determine, put the nail in the coffin, if they're going to be raising or pausing in the next rate decision. If inflation comes in higher than what is expected, the probability for a rate hike is higher. If inflation comes in lower than what was expected, then the probability for a rate pause is higher.
The NASDAQ market is nearly trading at a common resistance range for the past 3 to 4 months. There really hasn't been much progress beyond these levels, but there's some very active movers today. CoreWeave is one of the biggest rippers today, up 14% on the day. There is no fundamental change on the company.
CoreWeave is an incredibly overvalued company that loses over $1.9 billion dollars a year with a negative P ratio. There are high growth expectations for it, but it is not delivering. Its price is all over the place. Anytime that it rips up, it presents the idea of a potential short opportunity. It rips up, sells off, rips up, sells off, rips up, sells off.
CoreWeave retested the same previous highs after reporting earnings, gapped up to highs of around 110. There is still some room for this thing to continue to move up, but eventually it consolidates and then comes crashing down. Previously, it offered 24% downside. Based off of current highs, if it were to sell off, it offers 22% downside.
The Weevil trading application has a short tool to determine potential trade plans, showing risk if opening up a short and it continues to make new highs, and potential for profit. The focus is on risk-to-reward ratios. Any trade taken, long or short, should have potential for profit significantly greater than potential for loss. This lays it out with an 11:1 ratio, meaning it offers 11% potential for profit for every 1% of potential for loss.
The Weevil trading application has a huge promotion going on where you can earn up to 12 free fractional shares. These are shares of Tesla, Nvidia, SpaceX, and Apple, valued anywhere from $3 to $300. Minimum, if you sign up and deposit 100 bucks, you'll earn $36 minimum. Maximum, you can earn up to $3,600. The first link in the description provides access to the platform.
Bloom Energy is actively moving today. Bloom Energy got added to the S&P 500, which is a huge milestone for any publicly traded company. It is running off of a lot of excitement, a lot of momentum. By being included, a lot of indexes are likely to continue to purchase Bloom Energy, which means that it can continue to run higher. It is trading at over 300 times its earnings, but based off of previous highs, and if it continues to run up with nice price momentum and current market sentiment, it makes sense on why it possibly can.
If overall markets begin to fall, especially because of inflation and/or rate hike concerns, then that could have a negative catalyst on Bloom Energy as well.
Intel is running up 9% on the day due to a new price target. Intel has been a very resilient stock running up from lows of $25 per share or $20 per share all the way up to highs of 142. Overall direction is in its favor. It's retesting same previous highs that it's had about a few weeks ago at 106-107.
Intel loses 11 billion a year with a negative P ratio. Price performance is not a direct representation of how well the company is doing. There are just really high expectations for Intel because Trump continues to promote it. There is a big difference. If overall markets begin to turn around, it's always the most overvalued and overhyped companies that correct the hardest.
Alert is set for CoreWeave. If it begins to drop, more can be added to the short position. Shorting comes at a greater form of risk. No beginner should take advantage of any short because you need to learn how to manage and mitigate risk before actually just jumping into a short and hoping for the best. All of this is discussed within the LPP live trading session. The second link in the description provides access to join and watch live trading starting tomorrow once the markets open.
There are plans to live stream the economic reports released this week and Oracle and Adobe reporting earnings on Thursday. The goal is to end the year on a green note.
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