Morning Report Friday 5 September 2014
Oil is following / leading Gold and Iron Ore lower, should we sell?
This morning I am not at all surprised to see both Iron Ore down 1.6% to US$84.3/bbl, another fresh 5 year low and Gold down a few more dollars. Picking the bottom in commodities is an almost impossible task, but my negative view on the respective Gold and Iron Ore sectors remain. However, what did catch my eye was for second time in a week was the headline on Bloomberg of “US stocks fall from record as Energy Producers sink”, this managed to overshadow new stimulus from the ECB in the eyes of US equities. Crude Oil has fallen over 12% in the last 4 months, but remains in a relatively tight trading range for the last 4 years. Below I have revisited 4 oil and gas stocks to ensure my overall view has not changed.
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