A big week ahead of us with the IMF and the G7 meeting but what Jack talks about today are what he calls “The three E’s” – energy, earnings and expiration.
Energy: Pay attention to what’s happening with crude. We’ve seen the correlation between crude and equities and that hasn’t been broken. There’s still talk of a production freeze but Jack reminds everyone that until we see something concrete coming out of these oil producing nations, talk is just talk. “Buy the rumor and sell the news”
Earnings: Earnings are starting to come out this week. Pleasant surprises? Or market will re-price itself and meet those lowered expectations.
Expiration: April expiration is on Friday which is an off month expiration, meaning it’s not a quarterly month expiration. Pay attention to what happens on Friday’s expiration in the afternoon.