The Canadian Technician

What Effect Does A Drop In Oil Have? A Ripple, A Wave Or A Tsunami?


Today I'll be doing a webinar at 4:30 EST on the effect of oil's drop. If you live in an oil producing region, you'll have some ideas, but these charts will bring it home. If you aren't living in an energy hub, this could be a huge perspective change for you. I think you'll find the narrative compelling. This will cover off Canada and the US situation.

A few years ago, our province changed the tax system on oil and gas in Alberta. Within 6 months, the economy stalled and the government was forced to change the policy back. The Oil patch is very aware of the boom / bust cycle. Will it be different this time? Let me provide a hint. Today, the Canadian Government decided not to table a budget that was due in the next few weeks until 4 or 5 months from now. The Provincial Government has a 6 Billion dollar revenue hole that showed up since the September look. The provincial premier was formerly in the Federal Government in Ottawa and he spoke this week that we are facing the biggest challenge in a generation. These are the people that never want to over estimate the size of the issue, because its always tinted with optimism when you are the leader in power. It never pays to be a political pessimist when you are in power.

I'll roll out some charts that will present an alternate view from the continuous correspondence of bankers that suggest this will be a prosperity surge for North America. Hopefully you'll have time to watch it live or review it in our webinar archives. It will be in the January 15, 2015 archive. Joining me today will be Martin Pring. The webinar registration link is on the home page or click here right now.

Good trading,
Greg Schnell, CMT

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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