The drop off from the trend line highs could have been expected and it will require a dropping a substantial amount more to hit the trendline low. I think this is not that extraordinary given the same thing has happened before. The issue is, will this pullback continue.

The rise in prices is caused more from the US not increasing supply than OPEC. This is caused by the distress of small US oil companies borrowing too much to ramp up production, many of which aren't very profitable today due to their debt load. US majors also ramped besides Exxon who is the big developer for the next 5 years. Despite what people say, Exxon's move is the smarter move.

For one, it has the assets to expand. For another, it can increase production at a nice profit now rather than developing and selling oil at a loss for years. And lastly, it learned that in the US you can be penalized for buying an oil asset for the future and not developing it meaning now no oil company will buy and develop assets until needed. That takes away flexibility and US consumers will pay a price at the pump for this accounting silliness.

Looking at the market dynamics already a huge percentage of the market is quietly going neutral or hedging. Options are pointing down on weakening call volumes. If the trade dispute winds down the market will likely go up. That is a big if and is why the market is trading the way it is.

My feeling is charting doesn't work right now because the dynamics are different. They are news driven and the move from outright bullishness at the start of the year to something else has happened sooner this year.

Tesla has a lot more brand fanatics than customer loyalty right now. It's future is on getting more business and ramping up. It is still a very small player in terms of marketshare in autos. What matters for them is converting brand into high enough prices to make a profit and to cut their expense bleed so they don't constantly lose money and need to raise more money or die every other year.

Yes but nothing compared to its demand and is why it is fighting the island wars in Asia. It wants to drill for oil there.

Thanks for your insight on Canadian banks. I personally like TD and its exposure to the US economy which has been performing better than Canada.

US oil use to higher prices will hardly register as Asia, SE Asia, and India suck up the oil. On this front the US is also losing its clout as it becomes an oil exporter itself. If Trump wants to rein in oil prices he can demand other countries to stop using oil which would be a bit hypocritical, but so is punishing countries that supply the US what they want while at the same time encouraging increased demand at home with tax cuts.

I agree that a decline in the dollar will force the Federal Reserve to move rates up, however, right now the dollar has moved up and provided them a little leeway to be easy for now as the trade war erupts. I think they will take it unless the dollar moves sharply lower.

Sadly Musk has been quite poor at his estimates of production as well. This may be why the analysts have been wrong and shows why they should not take executives guidance all the time. Being the size it is, I don't believe that one can expect Tesla's stock to rocket higher the way it has in the past. The hard part of business begins for the company. That is performance and earnings rather than concepts and hype.

I think it is more Asia's markets revert back towards normalcy. The one concern is China and that's mostly doe to currency devaluation on top of market weakness. It is not good to push a major country when its down, because its contagion can spread quite easily into other markets. Thus the trade war is getting much more dangerous.