Everyone has their favorite ‘TELL’ about what will happen with the economy.
But nobody really has a crystal ball.
Some watch what they feel is the smart money and monkey see, monkey do.
How do you get that insider info ? You don’t.
It’s normally starring you in the face. But not for the timid or the uninformed about energy markets.
To understand any one market, it has to be looked at comprehensively.
But all those other markets rely on one thing. Energy.
You can use the futures market for oil. But that is not going to tell you what is actually going to happen.
Just what the future expectations for the demand of energy.
When they view a slower economic activity, demand will go down barring some other outside force and the potential for someone to cut production in the world supply.
And so the price of oil futures. Details to also watch to know the validity of the indicator. So you do need to know if any change is the result of production changes or even transportation of it.
Right now someone, it seems, even many are viewing economic output to lower worldwide as the price of oil has fallen $5 in 5 hours. And the trading day is not over.
This guide has always severed me well, but not really telling the future, but rather what other big money thinks of it.