The stock market ripped higher Tuesday as oil took off on a monster squeeze from the moment a Russian news agency reported that a Russian diplomat said that Russia and Saudi Arabia had reached a deal ahead of this week's OPEC meeting. This news / rumor / prepackaged algo spiker was effective in triggering an outrageous short squeeze in oil and the accompanying squeeze in stocks.
The algos are set so tightly to oil news now that they have no need for confirmation they will just buy the rumor then sell the news come Monday if we find out this weekend's OPEC meeting that the news was true. Either way it is a risky trade as if it's true, the sell the news exit is Monday and if it is not true, oil will take a nasty turn back down and take the stocks with it.
The charts below show where the indices are in the channels after Tuesday's short squeeze.
Trade well my friends
Alan
