Don here...
Gianni spotted the development everyone's missing while they obsess over the Fed.
Crude oil just crashed to prices we haven't seen since February 2021. We're talking five-year lows. This is massive.
The market is pricing in just one rate cut for 2025. Inflation concerns are everywhere. Then crude breaks down to $55 and keeps falling.
This changes everything.
Lower oil prices will calm inflation fears. That gives the Fed more room to cut rates. It puts money back in consumers' pockets. And it's already showing up in retail stocks.
Gianni breaks down the exact implications of this crude breakdown:
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Crude oil hitting lowest levels since February 2021 at $55 per barrel
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An ounce of silver now costs more than a barrel of oil (won't last long)
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Break below $55 opens path to $35-$45 zone where major long-term bottom could form
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Consumer discretionary stocks responding immediately: Victoria's Secret, Gap, Abercrombie & Fitch, American Eagle all strengthening
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Rotation signal: S&P 500 made new record high last week but NASDAQ didn't (warning sign)
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Financials leading the breakout: JP Morgan, Bank of America, Goldman Sachs hitting multi-year highs
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Bank of America finally recovered all losses from 2008 after 19 years
The bigger picture is this breakdown supports consumer spending heading into Q1. It helps people pay down holiday credit card debt. It gives the economy breathing room while setting up the next phase of this bull market.
Gianni's tracking which sectors are attracting institutional money during this shift away from tech dominance.
Watch Gianni break down the crude oil breakdown and the exact retail plays positioned to benefit
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
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