Reading the Tea Leaves: Dec 7, 2015

As the “markets” position themselves for the Fed’s rate hike on the 16th, one can only speculate as to which levers will be pulled in order to convince investors that higher interest rates are a good thing.

Oil, for instance, has undergone a massive slide since early October, and now sits at the lowest point possible for a potential rebound that wouldn’t break all the rules. As we’ve noted many times, it’s the overnight drop that sets up the bounce that helps stocks rise during the trading session. The key is knowing when and where the bounce will occur.