The price of oil fell off a cliff on Thanksgiving Friday. According to monthly CME futures, the price is not coming back for several months, and it will only inch up after that. Rex Energy (REXX) lost almost 18% in a day-long slide. Another oil stock, ROYT, had already lost a lot on Wednesday before Thanksgiving. These losses have come after the prices were already depressed, too.
The bottom line is that you should not invest in any oil stocks now or in the near future. Tech stocks like AAPL and SWKS (Skyworks) are still good along with certain Chinese stocks like ASHR and CBON. So, if we have a December rally, it will primarily happen in select stocks. Then, when January rolls around, conditions will be even worse for stocks. We need to be nimble and defensive in our changing stock market.
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