Not Just a Cog

Even with news of Russia and the Saudis agreeing to cut oil output in principle at the latest OPEC Meeting, it remains to be seen if oil can form a more tangible bottom. Case in point: As I write this the USO ETF for crude is back to red. 

However, energy stocks are enjoying a fine session so far to dovetail with yet another squeeze higher in the broad market amid further Fed action this morning. 

So have we hit bottom and will a retest of the March lows remains out of reach for bears? It is possible that the odd man/asset out in this whole puzzle will be the U.S. Dollar, as The Fed and government throw everything they can at the economic fallout from the virus and quasi-lockdown and sacrifice any semblance of monetary discipline when it comes to the Dollar. If so, then gold and her miners could easily continue higher. But so could stocks if we are truly beyond a breaking point in terms of some seemingly outlier hyper-inflationary event. 

First things first, though, and trying to escape from one of the largest demand shocks in the history of America is the top priority from an economic standpoint.

Regarding energy stocks, very few of them can claim to be above their 200-day moving averages. Cabot is one of them, though, below on its updated daily chart.

COG is, indeed, not just a cog in the energy machine.