“If I have positions going against me, I get right out; if they are going for me, I keep them… Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.” – Paul Tudor Jones

1. Iran Unrest Lifts Crude Prices — crude oil benchmarks, Brent and WTI, have both started the year above $60 per barrel for the first time since January 2014. “Growing unrest in Iran set the table for a bullish start to 2018,” the U.S.-based Schork Report said in a note to clients. Iran is the third-largest producer in OPEC, which agreed last year to extend its oil output cuts through Dec. 31, 2018.
2. China Became Biggest Importer of Natural Gas — Beijing’s crackdown on pollution has put China on track to overtake Japan this year as the world’s biggest importer of natural gas. Already the largest importer of oil and coal, China is the world’s third biggest user of natural gas behind the U.S. and Russia, but has to import around 40% of its total needs as domestic production can’t keep up with demand.
3. Trump to ‘Sharply’ Expand Offshore Drilling, Including Pacific Ocean — looking to boost domestic energy production, the Trump administration has proposed opening nearly all U.S. offshore waters to oil and gas drilling, including in the Atlantic, Arctic and Pacific oceans. That would reverse the Obama-era order placing 94% of the Outer Continental Shelf off limits to drillers.
4. Attorney General Sessions to Allow State Attorneys Decide on Federal Pot Enforcement Law — Attorney General Jeff Sessions has rescinded an Obama-era policy that had discouraged prosecutors in states where marijuana was legalized from bringing pot-related charges, unless they involved distribution to minors, revenue sale benefiting gangs and a few other federal priorities. In its place, prosecutors will be given discretion (not guidance) to pursue marijuana-related prosecutions.
5. AAII Weekly Sentiment Survey — According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment increased to 59.75% from 52.65% last week. Not only is this the third straight week where bullish sentiment has been above 50%, but it’s also the second-highest reading in bullish sentiment of the bull market!

Also, Bearish sentiment dropped from 20.63 down to a paltry 15.56%. The only week where bearish sentiment was lower was in November 2014, when it dropped to 15.05%.

The week ahead — Economic data from Econoday.com:

Tags: AAII Sentiment

This entry was posted on Monday, January 8th, 2018 at 2:35 pm and is filed under Weekly Summary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.