[video] Buy Energy Stocks on Crude Drop
NEW YORK ( TheStreet) -- The Iran nuclear deal may be pulling crude prices down, but Greywolf technician Mark Newton thinks its a good time to make an energy play.
I'm Debra Borchardt and this is your mid-day market update. All the indices are higher on the green territory, a lot this is being attributed to the historic deal with Iran telling them you know what you gotta cut back on your nuclear stuff for about six months, but only six months so far as the deal. Well for now crude is down although it was down more yesterday in going to join me now as Mark Newton, he's the chief technician over at Grey Wolf.
Mark, crude's down right now but not a whole lot is that because you know it's only a six month deal is there a lot of skepticism about this deal actually happening?
I think there's a lot of skepticism about this deal we read about that the media throughout the weekend. Crude and both Brand and WTI are up from earlier lows around last night both have been trying to stabilize, particularly WTI in the last few weeks between us 92 in really 96 levels, sorta bouncing around. Brent crude is actually had a decent move to the upside over the last couple weeks so both of them have hit levels based on the entire decline from September that make it seem like it's time to only us heading into the winter and so that could mean that you know is a la skepticism about this deal that I probably won't pass I know both Republicans and Democrats are against right now doing any sort a major deal knowing that Iran hasn't really given up hardly any concessions right now.
So you know seasonally its right to take a look at energy commodities as you near the month for December heading into the cold winter season I both you know the entire complex has been beaten up pretty badly in the last few months and if anything the sector's or in a similar position they they've under-performed another starting to stabilize rally so if anything for investors are given that there could be there's a lot of skepticism about the deal on people expected to pass and coming into a winner energies is looking pretty attractive tactically and it looks like it's probably a better risk/reward then some these other sectors like consumer discretionary industrials at have already made their moves are now start install out.
Well on a course we know that Iran when they were and their prime they were the number two dealer now they drop down the number six it's gonna be hard for them to ramp up quickly. That's Mark Newton he is the chief technician from Grey Wolf and I'm Deborah Borchardt, from TheStreet.