Your Wednesday Market Blip 12/23/15

Your Wednesday Market Blip 12/23/15

The Dow continued to gain ground closing up 185 points to 17,602. Trading volume was higher on the day but still well below average with the approach of Christmas.
What was interesting about today’s trading action was the profit taking in tech stocks that have been big winners this year versus the buying in beaten down energy stocks. Shares of companies like Facebook and Amazon were flat to lower while oil and pipeline related shares were strong all day. I think that tax loss selling might have already occurred in the energy space and now some investors are using the slow holiday season to take positions in companies that are cheap and could do well if oil rebounds in price. While this is just speculation on my part it is a dynamic worth watching.
Oil prices were boosted by an unexpectedly large fall in US crude inventories. The EIA reported crude inventories fell by 5.9 million barrels last week suprising the gurus who had expected a rise of about 1 million. Meanwhile Baker Hughes reported the US rig count fell by 3 to 538. This news boosted WTI crude by 4% to $37.8 per barrel. For the first time in 5 years WTI crude in now more expensive than North Sea Brent.
There will only be a limited trading session tomorrow so there will be no blip.