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Today was one for the history books.
The spot oil price for May futures contracts closed at -$37.63.
Essentially, that means you could get paid $37.63 to take physical possession of a barrel of oil. (More information from Shah on this below).
This unprecedented price move is sure to have short-, medium-, and long-term impacts on the global economy.
Here's what our experts – Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani – thought about the historic drop in oil today. And what that means for all stocks going forward…
- Chris is optimistic about the new deal Congress is reportedly close to passing to replenish the recently tapped small business loan program.
- He said it could be the catalyst stocks need to avoid heading back to their March lows. Still, he isn't completely confident it will be enough.
- Chris is not buying Gilead Sciences Inc. (NASDAQ: GILD) at these levels because the Remdesivir hype is fading and GILD's earnings will be more in focus this week.
- He said shares are a good candidate for a short-term put or bearish call spread where you can buy the stock at $78.
- Tomorrow morning, Chris will be covering earnings outlooks for three of the biggest companies reporting later this week. So, tune in at 8:45 a.m. EDT to catch that.
- Tom spent the majority of his live stream covering oil today.
- He was bearish on the commodity last week, and if you held his put spreads into this week, they should have paid off for you.
- One of the main reasons oil is down is because a Singapore oil trader, Hin Leong, failed to declare $800 million worth of losses from oils futures trading.
- Tom is watching the historic downturn in oil closely and looking for a spot to switch from short to long in the near future.
- Tomorrow, Tom is going to reveal predictable earnings season patterns so options traders can use them to their advantage when trying to play volatility over the next two weeks during earnings season. Tune in at 11 a.m. EDT tomorrow.
- R. is bullish on tech and likes IBM Common Stock (NYSE: IBM) because the company has had recent success engineering new products that have been selling despite the pandemic. He also likes its 5.3% dividend yield and thinks the company has a strong enough balance sheet to continue paying it easily.
- He likes Netflix Inc. (NASDAQ: NFLX) ahead of tomorrow's earnings because the company is showing no signs of slowing down during the quarantine.
- This week, D.R. will be closely watching tech earnings. Citrix Systems Inc. (NASDAQ: CTRX) and Intel Corp. (NASDAQ: INTL) both report on Thursday, and D.R. will break them down later this week.
- Shah thinks oil is a long-term buy if you have facilities to hold the physical commodity. But therein lies the problem… There's little demand for the commodity since hardly anyone is traveling these days, and there's nowhere to store it because most of the facilities and ships are already full.
- In the short term, Shah expects pressure on oil to continue impacting the global economy. So, don't buy yet – learn and watch closely over these next couple weeks before making your move.
- There will be tremendous pressure on oil companies that are leveraged and banks that have lent money to those leveraged oil businesses.
- Tomorrow, Shah will be uncovering some of his favorite oil companies and banks to short as pressure on oil will likely continue. So, be sure to tune in for his stream starting at 3:45 p.m. EDT.
Catch us tomorrow – starting LIVE again at 8:45 a.m. EDT with Chris Johnson, right here.