Crude Rises On Global Bailout

Oil is rebounding from last week’s 17% plunge as governments around the world announced plans to rescue the financial system. Crude rose as much as $4.10 to $81.80 a barrel on the New York Mercantile Exchange.

Compare this to Friday when oil fell to $77.70 a barrel, down 45% from its record high in July to its lowest price since September 10, 2007. But Goldman Sachs this morning lowered its target price for crude for a second time this year. It now sees fourth-quarter prices of $75, down from $110. Its year-end target is now $70 a barrel, down from $115. See Todd’s Monday Morning Quarterback, where he mentions his plays in the energy space.

From the Bull Pen: Transocean (RIG) was a play that Todd mentioned. The stock has gapped up to near $73.50 in the premarket. Those bullish can wait until the stock tests the gap toward $69.

From the Bear Cave: Crude is due for a rally. But the oil ETF (USO) failing to cross $80 would mark another major lower low since its July high. Those bearish can enter a downside position if and when that time comes.

For more ideas in real time throughout the trading day, check out Minyanville’s Buzz & Banter.


Quick Check Around the World

Asian trading closed with the Hang Seng 10.24%, Nikkei -9.62%, Sensex 7.64%, Taiwan -2.15% and Shanghai 3.65%.

Across the pond, we find the CAC 5.79%, DAX 6.64%, FTSE 4.51%

As of 8:15 a.m. EST, S&P Futures are trading +37 to 928, and Nasdaq futures are +47 to 1329.

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A Look At Commodities

Crude oil is currently at +4.27 to 81.98. Gold is +3.90 to 862.90. Silver is -0.020 to 10.580, and copper is -26.75 to 215.65.

The dollar index is down -1.611 to 81.382.


On the Radar

Economics

02:00 Treasury Budget (Sep)

Click here for the full trading radar.

Happy Monday! Good luck today.