Not going to beat around the bush this time round. We are coming to the end of year 2015 and so what will be the trend for US market and Crude oil before the beginning of year 2016.
Lets go straight to the charts
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| S&P 500 weekly chart |
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| DJI weekly chart |
Base on both DJI and S&P chart showing that the market try to retest the high after FED announced rate hike but failed after friday closing. IMO, I believe more downside for the coming week and will be quite bearish if both DJI and S&P successfully closed below August low.
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| WTI month chart |
Most trader start to speculate whether is there a rebound coming soon for WTI - crude oil. IMO, I believe WTI will try to test the low in 2008 at $32.5 and might even break through since FED announced rate hike last week. However I believe is good to slowly accumulate and watchlist certain companies when the price hit around $25-$30. Slowly invest bit by bit since it might take 1 or 2 qtr of 2016 before it recover. (OPEC have the final say whether to recover or not)
Overall: In theory, rate hike will definitely impact the economy in certain way and I believe will be a negative impact. However, the impact will not be immediate. To make it simple, during GFC, Fed reduce the rate to save the economy and how can it be that increase interest rate will improve the economy? (A real debatable question).
