Post OPEC Meeting

OPEC made an announcement yesterday urging members to cut back their Crude Oil production.

One might be asking, how will this impact the recent sell off of commodity related stock? I don't have an answer for that at the moment, we just need to sit tight and watch by scaling back our short positions if any.

Obviously one of the root cause of this global slowdown is due to the price of Crude Oil. Many companies have laid off workers.... from airlines, to financial institutions, to manufacturers and etc..

Maintaining an expensive price on Crude Oil is going lead to global recession because consumer spending is affected when more people lose their income.

In the coming days ... we could see some strong support for Crude Oil at 100.00. I anticipate a few scenarios:
1. Dollar keeps strengthening, putting more pressure on Crude Oil.
2. Dollar weakens, causing another rally in commodities.
Note: Whether the commodities rally will last will depend on the consumer. Eventually, corporations need to report their earnings.
3. Dollar has peaked and found strong support. No comments here.
4. We enter a Global recession, Crude Oil goes below 100.

I sense a change is about to happen in the commodity markets but lets observe a few more days to see where this leads to.