Republic Risk: Our Watch List Before Next Week

Investors didn't like a near-$300 billion sale in new bonds and notes. All while the data shows confusion on the state of the economy and consumer.

Equity Storm Watch Is YELLOW on the S&P 500 and YELLOW on the Russell 2000

This is a busy week for the energy sector after this sudden ConocoPhillips’ (COP) sudden Marathon (MRO) purchase. I’d be looking for the energy sector to get a little boost this morning. However, futures are dropping this morning after weak Treasury sales saw investors shun about $297 billion in new debt yesterday. Consumer confidence increased yesterday than expected, but 56% of Americans still think the economy is shrinking. I’m not sure where any of this data is originating anymore.

What to Do Today: This deal is an excellent opportunity to revisit the Occidental Petroleum (OXY) trade we know and love. We’d look to July on the $55-$57.50 level.