Oil Crashes Again!

1. May crude oil plunges by nearly 40.0% this morning. The june contract is lower too, but by just 12.7%. The May Contract expires tomorrow. The decline in oil is certainly spooking the markets today as many small energy companies will likely fail and need to file for bankruptcy. Nick owns October 16 contracts on USO etf $5 Strike. Give yourself a lot of time on clock

2. The White House and the congressional leaders are close to an agreement on a new $300 billion small business payroll relief rprogram. This tells us that business needs to open up soon. A large part of the country between the coasts should start to open up. 

3. There are lots of corporate earnings reports this week. Most earnings are expected to be bad, but we shall see how the markets react to the announcements.      

4. Still watching hotel stocks. Hyatt will be a reentry shortly. May even add Hilton. Airlines are down slightly. Airline earnings will be dismal. The move will occur after earnings are out. Expect corporate sandbagging. Delta is holding up well. Southwest is also looking good

Today the Dow opened down 1% but the Russell 2000 is only down .05%. It’s telling you that companies are coming back. People are ready to resume some semblance of normalcy. All the beaten down sectors. When the Russell starts to show leadership with the NASDAQ it’s a very positive sign. Semiconductors